EXHIBIT 99.1
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[NISOURCE LOGO] [COLUMBIA ENERGY GROUP LOGO]
NEWS RELEASE CONTACTS:
Media
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NiSource-Maria P. Hibbs (219) 647-6201
Columbia-R.A. Rankin, Jr. (703) 561-6044
Investor Relations
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NiSource-Dennis Senchak (219) 647-6085
NiSource-Rae Kozlowski (219) 647-6083
Columbia-Thomas L. Hughes (703) 561-6001
NISOURCE/COLUMBIA ENERGY GROUP OFFER CEG SHAREHOLDERS
ELECTION OF STOCK; MERGER TARGETED FOR COMPLETION IN LATE OCTOBER
MERRILLVILLE, Ind., and HERNDON, Va. (September 12, 2000) --
NiSource Inc. and Columbia Energy Group today announced that Columbia
shareholders are being asked to elect whether they want to receive
stock of the New NiSource Inc. in exchange for their Columbia shares
under the terms of the merger with NiSource.
In a package mailed to Columbia shareholders, the companies said
that Columbia shareholders wishing to receive New NiSource stock in
the merger must submit their completed election forms and stock
certificates in time to be received by the exchange agent, ChaseMellon
Shareholder Services, L.L.C., no later than 5 p.m. Eastern Time on the
second business day before the merger becomes effective.
The companies said they currently anticipate that the effective
time of the merger will occur in late October 2000, subject to meeting
the conditions to closing.
The companies said that when the effective date and the election
deadline are known, they will be announced in a press release, on the
NiSource and Columbia web sites and in a filing with the Securities
and Exchange Commission.
Under the terms of the merger agreement, Columbia shareholders
can elect to receive New NiSource stock. Otherwise, they will receive
of a combination of cash and New NiSource SAILS (Stock Appreciation
Income Linked Securities) units consisting of a zero coupon debt
security and a forward equity contract.
Elections are subject to proration, if Columbia shareholders
elect stock for more than 30 percent of the total outstanding Columbia
common shares. The right to elect stock is conditioned on Columbia
shareholders electing stock for at least 10 percent of the outstanding
Columbia shares.
Shareholders are asked to review the stock election materials for
details, and to contact ChaseMellon Shareholder Services at 1-800-685-
4258 with additional questions.
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 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 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.
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