Outstanding

A management group composed of all the corporate officers ofVirginia Gas Co. has presented a proposal to the company’s board toacquire all outstanding shares of the company’s common stock. Underthe proposal, each shareholder would be offered $4 in cash for eachshare. The cash purchase price represents a 33% premium to theclosing price of the company’s shares on Dec. 6. Michael L.Edwards, the company’s president and CEO, leads the managementgroup. The ultimate success of the proposal is contingent on thenecessary approvals of the shareholders, the board and regulators,as well as obtaining the necessary financing. Virginia Gas, basedin Abingdon, VA, is involved in all aspects of the gas businessfrom E&P to pipelines, storage and distribution.

NiSource Inc. said yesterday it has decided to extend its$74/share tender offer ($6.1 billion) for Columbia Energy Group’soutstanding common shares until 12 a.m. Dec. 10, while itparticipates in the negotiation process recently set up byColumbia. Meanwhile, Columbia told the SEC yesterday it has begunnegotiating with “numerous third parties,” including NiSource, whoare interested in reviewing non-public information about thecompany and considering making proposals for a potential merger orpurchase transaction.

Questar Corp. announced plans to purchase up to $50 million ofits outstanding common stock on the open market or in privatelynegotiated transactions over the next two years.

SRI Oil & Gas Ltd., a private Montreal company, agreed withCalgary-based Hornet Oil & Gas Ltd. to acquire all outstandingshares of Hornet in exchange for SRI shares. SRI already owns 11.8%of private company Hornet’s common shares. It is estimated about1,650,000 common shares of SRI will be issued in the event theoffer is successful. The exchange ratio will be based on the netvalue of each entity Dec. 31, 1998.