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 October 12, 2000, NiSource Inc. issued a press release
regarding its post-merger staffing plan. The text of the press
release is set forth below.
TEXT OF PRESS RELEASE
OCTOBER 12, 2000
FOR IMMEDIATE RELEASE
FOR ADDITIONAL INFORMATION
Media: Sally A. Anderson Investors: Dennis Senchak
(219) 647-6203 (219) 647-6085
Local Contacts: See page 3
NISOURCE INC. ANNOUNCES POST-MERGER STAFFING PLAN;
TRANSITION PROCESS BEGINS DEC. 1
MERRILLVILLE, IND. (October 12, 2000) - NiSource Inc. today
announced a plan designed to increase efficiencies and eliminate
redundancies following its merger with Columbia Energy Group. As part
of that plan, employees have been notified that approximately 800
positions or five percent of the current combined workforce will be
eliminated beginning December 1.
The reductions include voluntary early retirements as well as
voluntary and involuntary separations. They will be located throughout
the organization geographically and at all staff levels. Employees
leaving the companies involuntarily will be provided separation
benefits as well as assistance in seeking new career opportunities.
Pending approval by the U.S. Securities and Exchange Commission,
the NiSource/Columbia merger announced Feb. 28 is expected to close on
Nov. 1. The combination creates a super-regional energy powerhouse
serving 3.6 million gas and electric customers in nine states, with
access to 30 percent of the U.S. population representing 40 percent of
the nation's energy consumption.
The workforce reduction is part of a total plan projected to
realize merger synergies ranging from approximately $100 million in
2001 up to $175 million in 2004, through increased revenue,
consolidations, improved efficiencies and greater use of new
technologies. Most of the projected savings will come from the
elimination of duplicate corporate and administrative programs.
The combined company plans to take a pre-tax restructuring charge
in the fourth quarter 2000, primarily to cover costs related to the
staff reductions and reorganization. As previously announced, the new
NiSource expects to strengthen its balance sheet by nearly $1.5
billion through the sale of non-core assets.
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. 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. Investors 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.
LOCAL CONTACTS
State Contact Person Telephone No.
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West Virginia Karl Brack 304-357-2396
Indiana Regina Biddings 219-647-6204
Virginia Laura Bateman 804-323-5357
Kentucky Lisa Smith 859-288-0245
Ohio Steve Jablonski 614-460-4605
Pennsylvania/Maryland Rob Boulware 412-572-7136
Texas Bob Kiser 713-267-4180
Massachusetts/Maine/
New Hampshire Carol Churchill 508-836-7370
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