Lawsuit claims dismissed

Monday, Jan. 7, 2002 | 9:39 a.m.

Southern Union Co. of Austin, Texas, a one-time suitor for Southwest Gas Corp. of Las Vegas, said today a federal judge has thrown out all charges made by the Las Vegas natural gas utility against Southern Union.

Southern Union and Southwest have been embroiled in litigation in Phoenix federal court for nearly two years over Southwest's failed efforts to find a merger partner in 1998 and 1999. Southern Union had made an unsolicited bid for Southwest that had topped a $1.8 billion offer made by ONEOK Inc. of Tulsa, Okla. Southwest rejected the Southern Union offer, but Southern Union later sued, claiming the two companies had wrongfully conspired to derail the Southern Union bid.

The allegations led ONEOK to withdraw its offer for Southwest. Southwest sued ONEOK and Southern Union, and ONEOK sued Southern Union and Southwest.

Southern Union said Judge Roslyn Silver threw out all of Southwest's and ONEOK's claims against Southern Union. Southern Union said Silver allowed ONEOK's and Southwest's fraud charges against one another to continue to trial.

Southwest had no immediate comment.