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December 7, 2009

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Spurned S.W. Gas bidder in new merger

Thursday, Dec. 2, 1999 | 11:29 a.m.

AUSTIN, Texas -- Utility holding company Southern Union Co. said Wednesday it agreed to acquire Valley Resources Inc. for about $160 million, in a deal that adds to Southern Union's northeastern holdings.

Valley Resources, based in Cumberland, R.I., is a public utility holding company that supplies natural gas to 66,000 customers in Rhode Island.

The proposed Valley Resources transaction follows agreements by Southern Union to acquire Providence Energy Corp. and Fall River Gas Co. -- gas utilities with customers in Rhode Island and eastern Massachusetts.

Southern Union tried but failed this year to buy Southwest Gas Corp. of Las Vegas in a deal that resulted in lawsuits and a pending criminal investigation apparently targeting a former regulator in Arizona, where Southwest does business.

Southern Union said it will pay $25 in cash for each Valley share. Shares of Valley Resources closed Wednesday at $22.25, up $1.75, or 8.5 percent, on the American Stock Exchange.

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