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 August 22, 2000, NiSource announced that it has appointed the
key leadership to be in place in Ohio, Kentucky, Massachusetts, New
Hampshire and Maine upon completion of its $6 billion merger with
Columbia Energy Group. Robert Skaggs has been named President and CEO
of Columbia Gas of Ohio, Columbia Gas of Kentucky and Bay State Gas
Company. 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 Steve Jablonski
NiSource Inc. Columbia Gas of Ohio
219-647-6201 614-460-4605
NISOURCE ANNOUNCES POST-MERGER LEADERSHIP
SKAGGS NAMED PRESIDENT AND CEO FOR OHIO, KENTUCKY AND BAY STATE
MERRILLVILLE, Ind. (Aug. 22, 2000) - NiSource Inc. has appointed
the key leadership to be in place in Ohio, Kentucky, Massachusetts,
New Hampshire and Maine upon completion of its $6 billion merger with
Columbia Energy Group, which was announced Feb. 28 and is expected to
close by year-end.
Robert Skaggs has been named President and CEO of Columbia Gas of
Ohio, Columbia Gas of Kentucky and Bay State Gas Company. Skaggs adds
responsibility for Bay State to his duties as President and CEO of
Columbia Gas of Ohio and Kentucky.
"The distribution companies are the platform for our growth strategy
and Ohio, Kentucky, Massachusetts, New Hampshire and Maine 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."
Skaggs will report to Jeffrey Yundt, president of energy distribution,
and will be headquartered in Columbus, Ohio. Columbia Gas of Kentucky
will maintain its headquarters in Lexington, Ky., and will continue to
be led by Joseph Kelly, executive vice president and chief operating
officer. Kenneth Margossian will become executive vice president and
chief operating officer for Bay State which will continue to be
headquartered in Westborough, Mass.
"Bob Skaggs is a proven leader," Yundt said. "His talents will prove
invaluable during this time of change in the industry and our company.
Bob is a great fit for this role."
The three companies serve nearly 1.8 million customers, with Columbia
Gas of Ohio's more than 1.3 million customers in 63 counties, Columbia
Gas of Kentucky's nearly 142,000 customers in 31 counties, and Bay
State's more than 300,000 customers in Massachusetts, New Hampshire
and Maine.
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 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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