COLUMBIA ENERGY GROUP
SC 14D1/A, 1999-07-20
NATURAL GAS TRANSMISISON & DISTRIBUTION
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                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                           -----------------------

                              SCHEDULE 14D-1/A
                              (Amendment No. 8)

            TENDER OFFER STATEMENT PURSUANT TO SECTION 14(d)(1)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

                           ----------------------

                            COLUMBIA ENERGY GROUP
                          (Name of Subject Company)

                            CEG ACQUISITION CORP.
                                NISOURCE INC.
                                  (Bidders)

                        COMMON STOCK, $.01 PER SHARE
                       (Title of Class of Securities)

                                  197648108
                    (CUSIP Number of Class of Securities)

                               Stephen P. Adik
                      Senior Executive Vice President,
                    Chief Financial Officer And Treasurer
                                NiSource Inc.
                            801 East 86th Avenue
                      Merrillville, Indiana  46410-6272
                               (219) 853-5200
     (Name, Address and Telephone Number of Person Authorized to Receive
              Notices and Communications on Behalf of Bidder)

                       -------------------------------

                                 COPIES TO:

             Peter V. Fazio, Jr., Esq.           Alan G. Schwartz, Esq.
               Schiff Hardin & Waite           Simpson Thacher & Bartlett
                 6600 Sears Tower                 425 Lexington Avenue
             Chicago, Illinois  60606           New York, New York  10017
            Telephone:  (312) 258-5500         Telephone:  (212) 455-2000


           ======================================================





        This Amendment No. 8 (this "Amendment") amends and supplements
   the Tender Offer Statement on Schedule 14D-1, as amended, originally
   filed with the Securities and Exchange Commission on June 25, 1999
   (the "Schedule 14D-1") by CEG Acquisition Corp., a Delaware
   corporation (the "Offeror") and a wholly owned subsidiary of NiSource
   Inc., an Indiana corporation ("Parent"). The Schedule 14D-1 and this
   Amendment relate to a tender offer by the Offeror to purchase all of
   the outstanding shares of common stock, par value $.01 per share (the
   "Shares"), of Columbia Energy Group, a Delaware corporation (the
   "Company"), at a purchase price of $68 per Share, net to the seller in
   cash, without interest thereon, upon the terms and subject to the
   conditions set forth in the Offer to Purchase, dated June 25, 1999
   (the "Offer to Purchase"), and in the related Letter of Transmittal
   (which, as either may be amended or supplemented from time to time,
   collectively constitute the "Offer"), copies of which are filed with
   the Schedule 14D-1 as Exhibits (a)(1) and (a)(2), respectively.





































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   Item 10.  Additional Information.

        On July 20, 1999, Parent issued the press release relating to the
   filing of information under the Hart-Scott-Rodino Antitrust
   Improvements Act of 1976, as amended, which is included herein as
   Exhibit (a)(18) and incorporated herein by reference.

   Item 11.  Material to be Filed as Exhibits.

        (a)(1)         Offer to Purchase, dated June 25, 1999.*

        (a)(2)         Letter of Transmittal.*

        (a)(3)         Letter dated June 25, 1999, from Dealer Manager to
                       brokers, dealers, commercial banks, trust
                       companies and other nominees.*

        (a)(4)         Letter dated June 25, 1999, to be sent by brokers,
                       dealers, commercial banks, trust companies and
                       other nominees to their clients.*

        (a)(5)         Notice of Guaranteed Delivery.*

        (a)(6)         Guidelines for Certification of Taxpayer
                       Identification Number on Substitute Form W-9.*

        (a)(7)         Form of Summary Advertisement, dated June 25,
                       1999.*

        (a)(8)         Press Release issued by Parent on June 24, 1999.*

        (a)(9)         Form of letter dated June 28, 1999 from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to investors of the Company.*

        (a)(10)        Press Release issued by Parent on June 28, 1999.*

        (a)(11)        "NiSource/Columbia StraightTalk" communication to
                       stockholders of the Company issued by Parent on
                       July 2, 1999.*

        (a)(12)        Form of letter dated July 2, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to directors of the Company.*

        (a)(13)        Press Release issued by Parent on July 6, 1999.*

        (a)(14)        Form of letter dated July 12, 1999, from Gary L.
                       Neale, Chairman, President and Chief Executive
                       Officer of Parent, to shareholders of Parent.*

        (a)(15)        "NiSource/Columbia StraightTalk" communication to

                                      3





                       stockholders of the Company issued by Parent on
                       July 14, 1999.*

        (a)(16)        Press Release issued by Parent on July 14, 1999.*

        (a)(17)        Press Release issued by Parent on July 19, 1999.*

        (a)(18)        Press Release issued by Parent on July 20, 1999.

        (b)(1)         Commitment Letter dated June 23, 1999 to Parent
                       from Credit Suisse First  Boston and Barclays Bank
                       PLC.*

        (c)            Not Applicable.

        (d)            Not Applicable.

        (e)            Not Applicable.

        (f)            Not Applicable.

        (g)(1)         Complaint in NiSource Inc. and CEG Acquisition
                       Corp. vs. Columbia Energy Group et al., Delaware
                       Chancery Court, New Castle County.*

        (g)(2)         Complaint in NiSource Inc. and CEG Acquisition
                       Corp. vs. Columbia Energy Group et al., United
                       States District Court, District of Delaware.*

        (g)(3)         First Amended Complaint in NiSource Inc. and CEG
                       Acquisition Corp. vs. Columbia Energy Group et
                       al., United States District Court, District of
                       Delaware.*
   _______________

        *Previously filed.

















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                                  SIGNATURE

        After due inquiry and to the best of its knowledge and belief,
   each of the undersigned certifies that the information set forth in
   this statement is true, complete and correct.

                                      CEG ACQUISITION CORP.


                                      By:  /s/ Gary L. Neale
                                           ----------------------------
                                           Name: Gary L. Neale
                                           Title: President

                                      NISOURCE INC.


                                      By:  /s/ Gary L. Neale
                                           ----------------------------
                                           Name: Gary L. Neale
                                           Title: Chief Executive Officer

   Date: July 20, 1999





                                EXHIBIT INDEX

        Exhibit
        Number    Description
        ------    -----------

        11(a)(1)  Offer to Purchase, dated June 25, 1999.*

        11(a)(2)  Letter of Transmittal.*

        11(a)(3)  Letter dated June 25, 1999, from Credit Suisse First
                  Boston Corporation to brokers, dealers, commercial
                  banks, trust companies and other nominees.*

        11(a)(4)  Letter dated June 25, 1999, to be sent by brokers,
                  dealers, commercial banks, trust companies and other
                  nominees to their clients.*

        11(a)(5)  Notice of Guaranteed Delivery.*

        11(a)(6)  Guidelines for Certification of Taxpayer Identification
                  Number on Substitute Form W-9.*

        11(a)(7)  Form of Summary Advertisement, dated June 25, 1999.*

        11(a)(8)  Press Release issued by Parent on June 24, 1999.*

        11(a)(9)  Form of letter dated June 28, 1999 from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to investors of the Company.*

        11(a)(10) Press Release issued by Parent on June 28, 1999.*

        11(a)(11) "NiSource/Columbia StraightTalk" communication to
                  stockholders of the Company issued by Parent on July 2,
                  1999.*

        11(a)(12) Form of letter dated July 2, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to directors of the Company.*

        11(a)(13) Press Release issued by Parent on July 6, 1999.*

        11(a)(14) Form of letter dated July 12, 1999, from Gary L. Neale,
                  Chairman, President and Chief Executive Officer of
                  Parent, to shareholders of Parent.*

        11(a)(15) "NiSource/Columbia StraightTalk" communication to
                  stockholders of the Company issued by Parent on
                  July 14, 1999.*

        11(a)(16) Press Release issued by Parent on July 14, 1999.*

        11(a)(17) Press Release issued by Parent on July 19, 1999.*





        11(a)(18) Press Release issued by Parent on July 20, 1999.

        11(b)(1)  Commitment Letter dated June 23, 1999 to Parent from
                  Credit Suisse First Boston and Barclays Bank PLC.*

        11(g)(1)  Complaint in NiSource Inc. and CEG Acquisition Corp.
                  vs. Columbia Energy Group et al., Delaware Chancery
                  Court, New Castle County.*

        11(g)(2)  Complaint in NiSource Inc. and CEG Acquisition Corp.
                  vs. Columbia Energy Group et al., United States
                  District Court, District of Delaware.*

        11(g)(3)  First Amended Complaint in NiSource Inc. and CEG
                  Acquisition Corp. vs. Columbia Energy Group et al.,
                  United States District Court, District of Delaware.*

   _________________

        *Previously filed.










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<PAGE>



                                                      EXHIBIT 11(a)(18)
                                                      -----------------

   FOR IMMEDIATE RELEASE

   FOR FURTHER INFORMATION, CONTACT:

   INVESTORS:     Dennis Senchak Rae Kozlowski  Wendy Wilson
                  NiSource Inc.  NiSource Inc.  Hill & Knowlton
                  219-647-6085   219-647-6083   312-255-3033


   MEDIA:         Maria Hibbs    Larry Larsen
                  NiSource Inc.  Hill & Knowlton
                  219-647-6201   312-255-3084

               NISOURCE SEEKS HART-SCOTT-RODINO CLEARANCE FOR
                             COLUMBIA ENERGY BID

        Merrillville, Ind., July 20, 1999 - NiSource Inc. (NYSE: NI)
   today announced that with regard to its tender offer of Columbia
   Energy Group it has filed the necessary information under the Hart-
   Scott-Rodino (HSR) Antitrust Improvements Act of 1976 with the Federal
   Trade Commission and Department of Justice.

        Gary Neale, NiSource Chairman, President and Chief Executive
   Officer, said, "This sends a serious message to Columbia that we are
   committed to completing this transaction and that we are confident in
   our ability to secure the necessary regulatory approvals.  We have
   said throughout that we believe the regulatory approval process can be
   completed within six to nine months if we work together.  HSR
   clearance is an important first step, and one that confirms our
   commitment to move forward on all fronts of this transaction."

        NiSource Inc. is a holding company with a market capitalization
   of approximately $3.6 billion whose primary business is the
   distribution of electricity, natural gas and water in the Midwest and
   Northeast United States.  The company also markets utility services
   and customer-focused resource solutions along a corridor stretching
   from Texas to Maine.  Further information on the company may be
   accessed on the Internet at www.nisource.com.

        This release is neither an offer to purchase nor a solicitation
   of an offer to sell shares of common stock of Columbia Energy Group.
   Such offer is made solely by the Offer to Purchase, dated June 25,
   1999, and the related Letter of Transmittal.  It is not being made to,
   and tenders will not be accepted from, holders of shares of Columbia
   common stock in any jurisdiction in which making or accepting such
   offer would not comply with law. In any jurisdiction where a licensed
   broker or dealer must make such offer, it shall be deemed made on
   behalf of NiSource Inc. by Credit Suisse First Boston or other
   registered brokers or dealers licensed in such jurisdiction. The offer
   may be extended beyond its August 6, 1999 expiration date.  Any
   extension will be publicly announced no later than 9:00 a.m., New York
   City time, on the next business day. This release does not constitute







   a solicitation of proxies from Columbia Energy Group's stockholders.
   Any such solicitation will be made only by separate proxy materials in
   compliance with Section 14(a) of the Securities Exchange Act.
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