EXHIBIT 99.1
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[NiSource Logo]
Contacts: Media: Investor Relations:
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Sally Anderson (219) 647-6203 Dennis Senchak (219) 647-6085
Rae Kozlowski (219) 647-6083
NISOURCE AND COLUMBIA ENERGY GROUP COMPLETE MERGER;
COMBINATION CREATES SUPER-REGIONAL PLATFORM FOR GROWTH
MERRILLVILLE, Ind. (November 1, 2000) -- NiSource Inc. completed
its merger with Columbia Energy Group today, just eight months after
announcing the $6 billion transaction to create a super-regional
energy powerhouse stretching from the Gulf of Mexico to Chicago and
New England. The combined company will continue trading under the
symbol "NI" on the New York Stock Exchange.
Today's merger establishes the largest U.S. natural gas distribu-
tor east of the Rocky Mountains, with wholesale and retail gas and
electric operations. NiSource companies now access a high-growth
energy corridor that is home to 30 percent of the nation's population
and 40 percent of its energy consumption. NiSource distribution
companies serve 3.6 million gas and electric customers primarily in
nine states.
"Today marks a major step in realizing the vision for NiSource
first expressed five years ago: to build a super-regional platform for
growth in value for our shareholders, customers and employees," said
Gary L. Neale, NiSource chairman, president and chief executive
officer. "We are geographically and strategically positioned to profit
from the 60 percent growth rate projected for U.S. natural gas
consumption by 2020 using new technologies."
"The flexibility embedded in the utilization and operation of our
combined assets allows us to create a virtually unlimited number of
high-value energy packages," Neale added. "With distribution assets in
nine states, pipeline operations in 16 states, the largest gas market
area storage capacity in the U.S. and our emerging gas-fired
cogeneration and distributed generation offerings, the new NiSource
has the capabilities and innovation to serve 21st century energy
users."
"At the same time, we remain committed to maintaining our cus-
tomers' trust in the safety, reliability and responsiveness of energy
services delivered through our familiar local brands," he said. "Our
combined companies' exceptional teamwork in pre-merger integration
efforts has enabled us to hit the ground running with a smooth transi-
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tion process, assuring that the merger will be transparent to our
customers. Our storage facilities are full and ready to deliver to our
customers."
Also effective after the close of trading today, NiSource
will be added to the Standard and Poor's 500 Index (S&P 500) and the
Dow Jones Utility and 65-stock Composite Averages, replacing Columbia
Energy Group. Widely recognized around the world as the standards for
measuring the market performance of large-cap companies and utilities,
the S&P 500 and Dow Jones Averages include a representative sample of
leading U.S. companies. The addition of NiSource further reflects its
leadership position in the energy marketplace.
Under the merger agreement, Columbia shareholders had the right
to elect to receive NiSource stock for their Columbia shares, subject
to proration if elections were made with respect to more than 30
percent of the outstanding Columbia shares. The election period
expired October 30. NiSource estimates that holders of approximately
77 percent of Columbia shares have elected to receive NiSource stock.
The exchange ratio is 3.04414 NiSource shares for each Columbia share
that is exchanged for NiSource stock.
Columbia shares not exchanged for NiSource stock will be
exchanged 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. Existing NiSource
common shares will automatically be converted into common stock of the
new corporation without any action on the part of shareholders.
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.
This release contains forward-looking statements within the
meaning of the federal securities laws. These forward-looking
statements are subject to various risks and uncertainties. The
factors that could cause actual results to differ materially from the
projections, forecasts, estimates and expectations discussed herein
include factors that are beyond the company's ability to control or
estimate precisely, such as estimates of future market conditions, the
behavior of other market participants and the actions of the Federal
and State regulators.
Other factors include, but are not limited to, actions in the
financial markets, weather conditions, economic conditions in the two
companies' service territories, fluctuations in energy-related
commodity prices, conversion activity, other marketing efforts and
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other uncertainties. These and other risk factors are detailed from
time to time in the company's SEC reports. Readers are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date of this release. The company does not
undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of the document.
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