Filed by: New NiSource Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Columbia Energy Group
Registration Statement File No: 333-33896
On August 22, 2000, NiSource Inc. announced that it has appointed
the key leadership to be in place in Pennsylvania, Maryland and
Virginia upon completion of its $6 billion merger with Columbia Energy
Group. The text of the press release is set forth below.
TEXT OF PRESS RELEASE
AUGUST 22, 2000
FOR IMMEDIATE RELEASE
FOR ADDITIONAL INFORMATION
Maria Hibbs Richard Delgado
NiSource Inc. Columbia Gas of Virginia
219-647-6201 804-323-5456
NiSource Announces Post-Merger Leadership
Trubisz named President and CEO for Pennsylvania,
Maryland and Virginia
MERRILLVILLE, Ind. (Aug. 22, 2000) NiSource Inc. has appointed
the key leadership to be in place in Pennsylvania, Maryland and
Virginia upon completion of its $6 billion merger with Columbia Energy
Group, which was announced Feb. 28 and is expected to close by year-
end.
Anthony Trubisz has been named President and CEO of Columbia Gas
of Pennsylvania, Columbia Gas of Maryland and Columbia Gas of
Virginia. Trubisz currently serves as President and CEO of Columbia
Gas of Virginia. His new role incorporates the duties of Gary
Robinson, president and CEO of Columbia Gas of Pennsylvania and
Maryland, who is retiring after more than 36 years with Columbia
Energy Group.
"The distribution companies are the platform for our growth
strategy and Pennsylvania, Maryland and Virginia will play an integral
role," Gary L. Neale, NiSource chairman, president and chief executive
officer said. "We have a great depth of talent in place between
NiSource and Columbia Energy Group, and we are putting together a
leadership team that can deliver."
Trubisz will report to Jeffrey Yundt, president of energy
distribution, and will be headquartered in Pittsburgh, Pa. Columbia
Gas of Virginia will maintain its headquarters in Richmond, Va., and
will be led by a chief operating officer who will be named in the
future.
"Tony is a great fit for this role," Yundt said. "His
entrepreneurial talent combined with his strong focus on the customer
and thirty-plus years of experience in the changing industry position
him to take on this expanded leadership role."
The three companies serve more than 607,000 customers, with
Columbia Gas of Pennsylvania's more than 389,000 customers in 26
counties, Columbia Gas of Maryland's nearly 32,000 customers in three
counties, and Columbia Gas of Virginia's nearly 183,000 customers in
89 localities.
The new NiSource will serve more than 3.6 million gas and
electric customers primarily located in nine states. Its operations
will span the high-growth energy corridor that extends from the Gulf
of Mexico through Chicago to New England, creating the largest natural
gas distributor east of the Rockies, with wholesale and retail
electric operations.
The NiSource/Columbia merger is on target to close by the end of
2000, pending approval by the U.S. Securities and Exchange Commission.
The combination was approved by the Federal Energy Regulatory
Commission in July, following the necessary state actions regarding
the companies' distribution companies in Virginia, Pennsylvania,
Maryland, Indiana, Kentucky, Massachusetts, Ohio, Maine and New
Hampshire. The transaction also recently cleared the waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act at the U.S.
Department of Justice and the Federal Trade Commission. Shareholders
of both companies approved the merger in June.
NiSource Inc. (NYSE: NI) is a holding company with headquarters
in Merrillville, Ind., whose primary business is the distribution of
electricity, natural gas and water in the Midwest and Northeastern
United States. The company also markets utility services and
customer-focused resource solutions along a corridor from Texas
through Chicago to Maine. More information about the company is
available on the Internet at www.nisource.com.
Columbia Energy Group (NYSE: CG), based in Herndon, Va., is one
of the nation's leading energy services companies. Its operating
companies engage in nearly all phases of the natural gas business,
including exploration and production, transmission, storage and
distribution, as well as propane and petroleum product sales and
electric power generation. More information about Columbia is
available on the Internet at www.columbiaenergygroup.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 companies' ability to
control or estimate precisely, such as estimates of future market
conditions, the behavior of other market participants and the
actions of 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 territory, fluctuations in energy-related
commodity prices, conversion activity, other marketing efforts and
other uncertainties. These and other risk factors are detailed from
time to time in the two companies' 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 companies do 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.
In addition to other documents filed with the Securities and
Exchange Commission by the two companies, NiSource and the new holding
company have filed a registration statement, which contains a joint
proxy statement for NiSource and Columbia Energy Group. The final
joint proxy statement/prospectus, dated April 24, 2000, is available
and has been distributed to the companies' shareholders. Investment
and security holders are urged to read the joint proxy statement/
prospectus and other relevant documents filed with the SEC because
they contain important information. Investors and security holders
may receive the joint proxy statement/prospectus and other documents
free of charge at the SEC's Web site, www.sec.gov, from NiSource
Investor Relations at 801 East 86th Avenue, Merrillville, Indiana
46410 or at its Web site, www.nisource.com, or from Columbia Investor
Relations at 13880 Dulles Corner Lane, Herndon, Virginia 20171 or at
its Web site, www.columbiaenergygroup.com.
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