EXHIBIT 99.1
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NEWS [NISOURCE LOGO]
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801 E. 86th Avenue
Merrillville, IN 46410
FOR IMMEDIATE RELEASE
FOR ADDITIONAL INFORMATION
MEDIA
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Maria Hibbs (219) 647-6201
Sally Anderson (219) 647-6203
INVESTOR RELATIONS
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Dennis Senchak (219) 647-6085
Rae Kozlowski (219) 647-6083
NISOURCE ANNOUNCES COLUMBIA ENERGY GROUP STOCK PRORATION
MERRILLVILLE, Ind. (November 2, 2000) - NiSource Inc. (NYSE: NI)
today reported that more than 77 percent of Columbia Energy Group
shares elected to receive NiSource common stock in the NiSource and
Columbia merger, which closed on Nov. 1.
Under the merger agreement, Columbia shareholders had the right
to elect to receive NiSource stock for their Columbia shares, subject
to proration if elections exceeded 30 percent of the outstanding
Columbia shares. Elections were received representing approximately
61.3 million shares, or approximately 77.3 percent of the
approximately 79.3 million shares of Columbia Energy Group common
stock outstanding. As a result, 38.8301728 percent of those Columbia
shares for which valid stock elections were made, rounded down to the
nearest whole share, will be converted into NiSource stock. The
exchange ratio is 3.04414 NiSource shares for each Columbia share that
is exchanged for NiSource stock.
The balance of the shares covered by the stock elections, as well
as all Columbia shares for which no election was made will be
exchanged, on a per share basis, for $70 in cash and $2.60 face amount
of a SAILS (Stock Appreciation Income Linked Securities), a unit
consisting of a zero coupon debt security and a forward equity
contract. The NiSource SAILS began trading on the New York Stock
Exchange on a "when-issued" basis today under the ticker symbol "NSE."
The debt securities are reflected on the records of both the
Depository Trust Company (DTC) and Bank One Trust Company, N. A., the
Securities Intermediary for the SAILS, as Units, each Unit consisting
of one debenture, $2.60 stated value. The manner in which DTC and the
Securities Intermediary reflect the debentures on their books is not a
substantive change in the debt securities, but only a matter of their
internal records. In connection with depositing debentures with the
Securities Intermediary to recreate SAILS (from Treasury SAILS), or
trading debentures when (1) debentures are traded separately from the
SAILS, prior to the purchase contract settlement date and (2) after
the purchase contract settlement date, instructions to DTC or the
Securities Intermediary should refer to the number of Units
(debentures) involved, rather than to a principle dollar amount of
debentures.
Existing NiSource common shares were automatically converted by
the merger into common stock of the new corporation without any action
on the part of shareholders.
ChaseMellon Shareholders Services, L.L.C., the exchange agent in
the merger, will mail two separate statements to each Columbia
shareholder who properly elected NiSource stock in the merger. One
statement will identify the number of NiSource shares issued in non-
certificated form and will include a check for cash paid instead of
any fractional shares. The second statement will include a check for
the cash portion of the merger consideration and will identify the
number of SAILS issued in book-entry form. By Nov. 6, 2000, the
exchange agent will also mail to the Columbia shareholders who did not
elect NiSource stock documents to permit them to exchange their
Columbia shares for cash and NiSource SAILS.
NiSource Inc. is a holding company with headquarters in
Merrillville, Ind., whose operating companies engage in virtually all
phases of the natural gas business from exploration and production to
transmission, storage and distribution, as well as electric
generation, transmission and distribution. NiSource companies serve a
high-growth energy corridor from the Gulf of Mexico to the Midwest to
New England. More information about the company is available on the
Internet at www.nisource.com.
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