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Lost profit claim dismissed

Wednesday, Sept. 26, 2001 | 11:04 a.m.

A federal judge in Phoenix partially dismissed a Texas company's legal demands for lost profits from its failed attempt to take over Southwest Gas Corp. of Las Vegas.

Southern Union Corp. of Austin had sought up to $750 million from Southwest and ONEOK Inc., the Oklahoma company that, at one time, had plans to acquire Southwest Gas for $1.8 billion. This deal fell apart, and the three companies became entangled in a web of lawsuits, after claims emerged that ONEOK and Southwest Gas officials had tried to improperly influence Arizona regulators. Southern Union had made an unsolicited, competing bid for Southwest Gas, but was rebuffed by the company.

Southwest and ONEOK announced that Southern Union's claim for lost profits from a prospective Southwest Gas takeover had been dismissed. Judge Roslyn Silver, however, did not dismiss Southern Union's claim for out-of-pocket expenses related to the deal, nor its claims for punitive damages from both companies.

Still, Southwest Gas declared the ruling a "huge victory," saying most of the recovery Southern Union was seeking came from the lost profits claim.

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