Southwest merger endorsed
Friday, July 30, 1999 | 11:17 a.m.
A major advisory and research agent for institutional investors has recommended its clients vote for Southwest Gas Corp.'s proposed $1.8 billion acquisition by ONEOK Inc.
The recommendation was made by Institutional Shareholder Services of Rockville, Md. ISS advises nearly 500 institutional investors, primarily pension plans and investment managers. It also casts proxy votes on behalf of many of its clients.
"This is a very positive endorsement, from an important voice in the institutional investment community," Southwest spokesman Lew Phelps said. "Whether this will change any votes, that's impossible to tell."
In making its recommendation, ISS acknowledged that shareholders might be tempted to hold out for Southern Union Co.'s rival bid of $33.50 per share. ONEOK has offered $30.
"Shareholders naturally want the most money they can get for their shares, but they also need certainty," ISS said. Shareholders had just one choice, the firm claimed -- "to accept the ONEOK deal or no deal at all."
That echoes Southwest's claim that the Southern Union proposal would face too many regulatory obstacles. By contrast, Southwest points out that Nevada has already approved the deal, while California and Arizona are expected to follow in September.
Southwest hopes to close on the deal in the fourth quarter, though lawsuits and a criminal probe of the deal could hinder the transaction. Arizona officials are investigating Southern Union charges that an Arizona regulator improperly intervened in behalf of ONEOK.
It's unclear how many Southwest shareholders are actually clients of ISS. About 50 percent of Southwest's shares are held by institutional investors.
New York investor Mario Gabelli has already announced he will vote his funds' shares against the merger. Gabelli is the largest institutional investor, with 10 percent control.
"Your board's conclusion that the ONEOK transaction was better for shareholders is wrong," Gabelli said in a letter to Michael Maffie, chief executive of Southwest. "My clients prefer a fully financed offer that more than compensates for any bureaucratic delays."
Shareholders are scheduled to vote on the ONEOK offer on Aug. 10 in Las Vegas.
archive
- Most Read
- Discussed
- Most E-mailed
- Trainers scuffle at Manny Pacquiao, Miguel Cotto weigh-in
- Hooters reports loss, says Chapter 11 possible
- Live Blog: Pacquiao wins by TKO in round twelve
- Clubs want to be ‘good citizen,’ so stripper-mobile ends its run
- Police seek man who stole $2,000 worth of clothing
- Las Vegas club agrees to halt promotion featuring live dancers on truck
- Nuclear plant in Ely could complicate radioactive waste, water issues
- Manny Pacquiao says he feels stronger than ever
- Las Vegas Hilton reports wider loss in quarter
- Now we can all see Islamic extremism for what it truly is
Blogs
The Kats Report
New face of Monte Carlo includes all the faces of Caliendo
The Greene Room
Predicting this weekend's Mountain West football slate (1 Comment)
Top Chef: Las Vegas
Top Chef Episode 11: Child's play
Miech Again
UNLV prez Smatresk is ready for some basketball (9 Comments)
Politics: The Early Line
Harry Reid's fourth TV ad begins running today
The Greene Room
Chad Ochocinco vs. Anderson Silva? That would be a sight ... (5 Comments)
Top Chef: Las Vegas
The Jet Stream: The three stages of chefdom
Calendar »
- 15 Sun
- 16 Mon
- 17 Tue
- 18 Wed
- 19 Thu
-
Actor's Expo at Rave Motion Pictures
Rave Motion Pictures Town Square 18 | 3 p.m. to 5 p.m.
-
Lily Tomlin at the Hollywood Theatre
Hollywood Theatre at MGM Grand
-
Neil Sedaka at the Orleans
Orleans Hotel-Casino
-
Supernatural Santana – A Trip Through the Hits at The Joint
The Joint
The Sun
Locally owned and independent for more than 50 years.
Technorati





