Seeking Alpha

NiSource link to shale boom enhances deal appeal, Bloomberg says

  • NiSource (NI +0.7%) is discussed by Bloomberg as a prime acquisition candidate for utility companies seeking to profit from the shale gas boom.
  • NI surged to all-time highs last week amid takeover speculation fueled by a December report that Dominion Resources (D +0.2%) was raising money for a purchase; an all-cash deal would give Dominion complementary gas assets and boost its earnings, even if it paid a 20% premium to NI’s Friday closing price of $33.89, according to Bernstein analysts.
  • NI’s Columbia Pipeline Group operates ~15.7K miles of lines that stretch from Louisiana to New York, as well as gas and electric utilities; analysts say NI's growing pipeline business has appeal, "both fundamentally and to those who could conceivably use financial engineering to extract even greater value."
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Comments (1)
  • wotcher
    , contributor
    Comments (32) | Send Message
     
    'NI's growing pipeline business has appeal, "both fundamentally and to those who could conceivably use financial engineering to extract even greater value."'

     

    Great if you want to profit from Dominion selling US gas resources to Asia. Our mineral rights were leased under the auspices of extracting gas for US energy independence, but this is really all about selling it to the highest bidder.
    21 Jan 2014, 10:43 PM Reply Like
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