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 July 5, 2000, NiSource announced that it has expanded the role
of one of its executives, James M. Clarke, in order to optimize assets
in NiSource's merger with Columbia Energy Group. The text of the
press release follows:
PRESS RELEASE
JULY 5, 2000
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION
Investors: Dennis Senchak Rae Kozlowski Media: Sally Anderson
219-647-6085 219-647-6083 219-647-6201
NISOURCE EXPANDS EXECUTIVE'S ROLE TO OPTIMIZE ASSETS IN
COLUMBIA MERGER
TARGETING BEST USE OF RESOURCES TO ADD SHAREHOLDER, CUSTOMER
VALUE
MERRILLVILLE, Ind. (July 5, 2000)--NiSource Inc. (NYSE: NI) today
announced that James M. Clarke has been elected Vice President of Risk
Management and Capital Allocation. Formerly risk management officer,
Clarke will assume the additional responsibilities of enterprise-wide
capital allocation as NiSource integrates its resources with those of
Columbia Energy Group (NYSE:CG) under a $6 billion transaction
expected to close before year-end.
"Jim's extensive knowledge of markets, trading, derivatives and
risk management will help us achieve our goal of becoming the premier
competitor in increasingly volatile financial and energy markets,"
explained Gary L. Neale, NiSource chairman, president and chief
executive officer. "His group will be targeting the best use of
NiSource resources to add value for our shareholders and customers."
Neale said Clarke will help evaluate the performance of all
NiSource/Columbia business units based on risk-adjusted returns rather
than nominal returns to determine the most efficient use of capital
across the merged organization. The process will result in allocating
capital on a more competitive basis among the units, assuring a
market-based approach to budgeting. Other expected benefits include
the identification and development of underutilized assets and a
reduction in the company's cost of capital.
NiSource also announced the promotions of two of Clarke's staff
members as part of their expanded responsibilities: Kevin Kremke to
Principal, Market Risk, based in Merrillville; and Roger Bongiovanni
to Principal, Operations and Credit Risk, Houston. As risk management
officer at NiSource, Clarke has been responsible for measuring and
monitoring market, credit and operational risk. He will continue to
report to Stephen P. Adik, NiSource senior executive vice president,
treasurer and chief financial officer.
Prior to joining NiSource in 1998, Clarke was a principal at
several financial entities in Chicago, including DRW Investments,
Caxton Corporation and Antler Partners, where he was responsible for
risk management and strategy development. He began his career at A.G.
Becker/Paribas, New York. Clarke holds a degree in business
administration and finance from the State University of New York at
Oswego.
NiSource Inc. 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, 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 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 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
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.
# # #
