EXHIBIT 99
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NISOURCE [LOGO] COLUMBIA
ENERGY
GROUP LOGO
NEWS RELEASE CONTACTS:
MEDIA
NiSource-Sally Anderson (219) 647-6203
Columbia-R.A. Rankin, Jr. (703) 561-6044
INVESTOR RELATIONS
NiSource-Dennis Senchak (219) 647-6085
NiSource-Rae Kozlowski (219) 647-6083
Columbia-Thomas L. Hughes (703) 561-6001
SEC APPROVES NISOURCE AND COLUMBIA ENERGY GROUP MERGER;
TRANSACTION CLOSING SET FOR NOV. 1
HOLDERS OF MORE THAN 60% OF COLUMBIA SHARES ELECT NISOURCE STOCK
MERRILLVILLE, Ind. and HERNDON, Va. (October 30, 2000)--NiSource
Inc. and Columbia Energy Group today received U.S. Securities and
Exchange Commission approval to complete their merger. The companies
will close the transaction on Nov. 1, with the combined company
continuing to trade as NiSource (NYSE: NI) on the New York Stock
Exchange. Columbia Energy Group shares (NYSE: CG) will cease trading
before the market opens on Nov. 2.
The NiSource/Columbia merger will establish the largest U.S.
natural gas distributor east of the Rocky Mountains. NiSource
companies will access a high-growth energy corridor that is home to 30
percent of the nation's population and 40 percent of its energy
consumption. NiSource distribution companies will serve 3.6 million
gas and electric customers primarily in nine states.
"We are extremely pleased to have received SEC approval just
eight months after announcing our $6 billion transaction to create a
super-regional energy powerhouse stretching from the Gulf of Mexico to
Chicago and New England," said Gary L. Neale, NiSource chairman,
president and chief executive officer. "This is record time in the
energy industry, where mergers can take years. The fast track of
approval is a testament to hard work on both sides of the regulatory
table at the state and federal levels, as well as exceptional teamwork
among Columbia and NiSource employees."
--more--
SEC APPROVES NISOURCE/COLUMBIA MERGER--2
Under the merger agreement, Columbia shareholders had the right
to elect to receive NiSource stock for their Columbia shares, subject
to proration if elections were made with respect to more than 30
percent of the outstanding Columbia shares. The election period
expired at 5 p.m. New York time today, and preliminary indications are
that holders of more than 60 percent of Columbia shares have elected
to receive NiSource stock. As announced earlier today, the exchange
ratio is 3.04414 NiSource shares for each Columbia share that is
exchanged for NiSource stock.
Columbia shares not exchanged for NiSource stock will be
exchanged for $70 in cash and $2.60 face amount of a SAILS (Stock
Appreciation Income Linked Securities), a unit consisting of a zero
coupon debt security and a forward equity contract. Existing NiSource
common shares will automatically be converted into common stock of the
new corporation without any action on the part of shareholders.
Today's SEC order also requires NiSource to divest of IWC
Resources Corporation, its water operations subsidiary based in
Indianapolis, within a three-year period to comply with the Public
Utility Holding Company Act of 1935. The Act requires utility holding
companies to divest operations not integral to their primary
operations.
NiSource Inc. (NYSE: NI) is a holding company with headquarters
in Merrillville, Ind., whose primary business is the distribution of
natural gas, electricity 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. 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.
--more--
SEC APPROVES NISOURCE/COLUMBIA MERGER--3
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.
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