Southern Union unhappy with decision

Tuesday, April 27, 1999 | 10:35 a.m.

"In our opinion, the Southwest board's decision defies logic," Southern Union Co. Chairman and Chief Executive George Lindemann said in a statement. "Southern Union's $32-per-share offer is clearly superior to the $30 per share offered from ONEOK Inc., representing over $60 million more in cash to shareholders that ONEOK is offering."

Las Vegas-based Southwest announced on Monday that it was taking the ONEOK deal despite the richer offer from Southern Union because of fears that a Southern Union deal would have gotten bogged down in regulatory delays. Two additional state utilities commissions would have had to approve any deal with Southern Union.

Southwest announced plans to merge with ONEOK in December. At that time, officials said ONEOK's strong balance sheet, combined with the rapidly expanding southwestern markets controlled by Southwest Gas, would result in a much stronger company. That's important to the company because it will face competition for the first time next year.

Southern Union said it anticipates no regulatory issues or delays if it were part of the merger and is evaluating all options in convincing Southwest to reconsider the decision.

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