Filed by: NiSource Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Columbia Energy Group
Registration Statement File No: 333-33896
On June 2, 2000, NiSource issued a press release announcing that
Columbia Energy Group shareholders approved the merger between
NiSource and Columbia making the combined company the largest natural
gas company east of the Rockies. NiSource shareholders approved the
merger on June 1, 2000. The text of the press release is set forth
below.
PRESS RELEASE
June 2, 2000
NEWS [NiSource Logo]
FOR ADDITIONAL INFORMATION
INVESTOR RELATIONS: MEDIA:
Dennis Senchak (219) 647-6085 Sally Anderson (219) 647-6203
Rae Kozlowski (219) 647-6083
NiSource Applauds Columbia Energy Shareholder Vote to Merge
Approval Seen As "Giant Step" Toward Super-Regional Powerhouse
MERRILLVILLE, Ind. (June 2, 2000)--NiSource Inc. (NYSE:NI) today
applauded Columbia Energy Group (NYSE:CG) shareholders for approving
the two companies' merger into the nation's largest natural gas
company east of the Rockies. NiSource shareholders also
overwhelmingly approved the merger at their annual meeting June 1.
"Columbia shareholders' solid vote in favor of the merger is a
giant step toward our completion of the agreement later this year,"
said Gary L. Neale, NiSource chairman, president and chief executive
officer. "Their approval underscores the positive impact the combined
company will have, not only on shareholder value but on the
communities we serve."
Neale said the combined NiSource-Columbia Energy Group enterprise
will create the premier energy supplier capable of bringing new
choices for consumers, such as the evolving gas-fired technologies
that provide total on-site solutions including electric generation for
homes and businesses. These technologies, which can be used in
conjunction with or in place of traditional electric distribution
systems, are projected to help increase U.S. natural gas demand by 60
percent by the year 2020.
Approval of Columbia Energy Group shareholders was necessary to
continue the merger process. The next steps are approvals by several
state public utility commissions and federal regulatory agencies.
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 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 retail energy marketing, 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 may 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 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/prospectus for
NiSource and Columbia Energy. The final joint proxy
statement/prospectus, dated April 24, 2000, is available and
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has been distributed to the companies' shareholders.
Investors and security holders are urged to read the joint
proxy statement/prospectus and any 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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