Voted

The members of the New York Mercantile Exchange voted 97.5% infavor of a demutualization plan yesterday that will make the exchangethe first in New York to convert from a not-for-profit membershipstructure under New York law to a for-profit organization underDelaware law (see Daily GPI, May 5). Thedemutualization plan calls for the equity in the exchange to remainwith the seat-owners of its Nymex Division. “Today’s approval, is justthe first step in repositioning the Exchange as a 21st centurybusiness enterprise that will create and pursue profitable newopportunities, react rapidly and decisively in an increasinglycompetitive marketplace, and explore interest by outside investors,”said Exchange Chairman Daniel Rappaport. The plan has already receivedapproval from the Securities and Exchange Commission and the Exchangeanticipates approval shortly from the Commodity Futures TradingCommission. It is also seeking a favorable tax ruling from theInternal Revenue Service. A new stock-holding company named NymexHoldings, Inc., will be formed to own all of the economic interestsand most of the voting control in the for-profit membershipcorporation. Each existing Nymex Division membership will be convertedinto one share of common stock in Nymex Holdings. The Exchange is thelargest physical commodity exchange in the world, with volume reachingclose to 110 million contracts in 1999.

The Senate Commerce Committee last week voted out pipelinesafety reauthorization legislation that the natural gas pipelineindustry has billed as a “gross overreaction” to an explosionbrought on by a rupture in a products pipeline last June.

The Senate Commerce Committee yesterday voted out pipelinesafety reauthorization legislation that the natural gas pipelineindustry is billing as a “gross overreaction” to an explosionbrought on by a rupture in a products pipeline last June.

Rhode Island’s Providence Energy Corp. shareholders votedoverwhelmingly last week to approve a proposed merger with Austin’sSouthern Union Co. First announced last November, the proposedmerger is on track for regulatory approval by late this summer.ProvEnergy shareholders would be paid $42.50 per share with themerger.

Rhode Island’s Providence Energy Corp.’s shareholders votedoverwhelmingly to approve a proposed merger with Austin’s SouthernUnion Co. this week. At the special shareholders’ meeting inProvidence on Monday, nearly 95% of those voting were in favor ofthe move.

ONEOK said last week that its board of directors has voted toterminate its planned merger with Southwest Gas. The terminationdecision was made pursuant to a provision in the merger agreementthat permitted any party to terminate if certain conditions werenot fulfilled by December 14, 1999. ONEOK notified Southwest of thetermination late last week.

A CMS Trunkline spokesman said executives had not had time to studythe 110-page order, but based on a quick reading expected it would resultin some reduction of rates. The new formulas included in the order wouldhave to be applied to the underlying data to calculate a specific number.

Shareholders of MCN Energy Group and DTE Energy bothoverwhelmingly voted in favor of their two companies’ mergeryesterday. DTE proposed to purchase MCN last October (see DailyGPI, Oct. 6). The deal still needs Security and ExchangeCommission, Federal Trade Commission (FTC) and FERC approval. Thecompanies expect the merger to close in mid-2000.

Dynegy’s takeover of Illinova took a big step toward completion as shareholders for each company last week voted in favor of the transaction. Illinova’s vote of approval was announced during a special meeting at company headquarters in Decatur, IL, while Dynegy’s was held during a special shareholder meeting in Houston.