Southern Union fires back at LV utility

Tuesday, May 29, 2001 | 11:07 a.m.

Southern Union Co. of Austin, Texas, fired back at Southwest Gas Corp. of Las Vegas, calling its description of an Arizona judge's decision last week "absurd."

Southern Union unsuccessfully pursued a takeover of Southwest Gas more than a year ago, and the two companies are now suing each other in federal court in Phoenix.

Last week, the judge overseeing this case denied Southern Union's request to reconsider a December decision that dismissed Southern Union's claims under the Racketeer Influenced Corrupt Organizations (RICO) Act. Southern Union's remaining claims, as well as those of Southwest Gas, will be heard at a trial set to begin in November.

Southwest Gas had characterized the dismissals as a victory, calling Southern Union's claims "sensational." In a press release, Southern Union said it sees the decision in a different light.

"This recent ruling has nothing to do with the merits of Southern Union's claim," Southern Union Treasurer George Yankowski said in the release. "Southwest's 'spin' on the court's decision is yet another demonstration of Southwest Gas trying to mislead its shareholders and the public."

Southwest had spurned Southern Union's offer for a lower bid by ONEOK Inc. of Tulsa, Okla., in early 1999. Southern Union then sued Southwest Gas and ONEOK in July 1999, claiming officers of the companies improperly worked with an Arizona regulator in an effort to derail Southern Union's bid. Southwest Gas countersued, claiming Southern Union's efforts helped cause its $1.8 billion merger with ONEOK to fall apart in early 2000.