Exhibit 2
NEWS RELEASE
LACLEDE GAS
Contact: Richard Hargraves
(314) 342-0652
FOR IMMEDIATE RELEASE
October 26, 2000
LACLEDE GAS COMPANY'S BOARD OF DIRECTORS
UNANIMOUSLY APPROVES MANAGEMENT'S
RECOMMENDATION TO FORM HOLDING COMPANY
Laclede Gas Company (NYSE: LG) today announced that it will seek
authorization to reorganize its corporate structure to form a holding
company known as The Laclede Group, Inc.
Today, Laclede Gas Company's Board of Directors authorized management to
file appropriate documents with the Securities and Exchange Commission and
to take additional steps to obtain necessary regulatory and shareholder
approval.
Under the new structure, Laclede Gas would become a wholly owned
subsidiary of The Laclede Group, Inc., but would continue to operate as a
regulated natural gas distribution utility. Existing corporate subsidiaries
of Laclede Gas - Laclede Energy Resources, Inc., Laclede Venture Corp.,
Laclede Development Company, Laclede Investment Corporation, Laclede Gas
Family Services, Inc., and Laclede Pipeline Company - would become
subsidiaries of The Laclede Group, Inc., and would remain unregulated.
"Our goal is to better serve the needs of our customers and our
shareholders. We plan to do this by continuing to improve the reliable
natural gas service provided by our regulated core utility business while
further developing our presence in unregulated arenas with which we are
familiar and have some expertise," said Douglas H. Yaeger, Laclede Gas
Company's Chairman, President and Chief Executive Officer.
"By creating a corporate structure that more thoroughly separates Laclede
Gas' traditional utility functions from unregulated business activities,
this reorganization will allow for clearly defined utility operations that
reinforce and protect the financial strength of the regulated utility. At
the same time, such separation will provide The Laclede Group's unregulated
subsidiaries with additional financial and operational flexibility to pursue
business opportunities that present themselves," Yaeger said.
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Laclede Gas Company was formed in 1857 under the name "The Laclede Gas
Light Company" and operated as such until 1950. Today, Laclede Gas is the
largest natural gas distribution company in Missouri, serving more than
633,000 customers in St. Louis and surrounding counties in Eastern Missouri.
This release does not constitute an offer of any securities for sale.
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Note: This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
The Company's future operating results may be affected by various
uncertainties and risk factors, many of which are beyond the Company's
control, including weather conditions, governmental and regulatory policy
and action, the competitive environment and economic factors. For a more
complete description of these uncertainties and risk factors, see the
Company's Form 10-Q for the quarter ended June 30, 2000, filed with the
Securities and Exchange Commission.
