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How to place a value on a utility company? That is the question.
LG&E Energy Corp. plans to reenter the natural gas marketing business by purchasing Dallas-based Hadson Corp. for $143 million. The deal includes all of Hadson's gas marketing operations, including 1,300 miles of gas-gathering systems, gas transmission systems, and gas processing and storage systems. Hadson's operations are located primarily in New Mexico, West Texas, Oklahoma, and Montana.
The two companies reached a definitive agreement, but the sale is subject to regulatory approval. The agreement marks LG&E Energy's second venture into natural gas marketing. In 1992, LG&E acquired and later sold a partnership interest in the Natural Gas Clearinghouse. Roger Hale, LG&E Energy chairman, says customers are looking for companies that can offer more choice, including "an array of both electric and gas energy solutions."
Santa Fe Energy Resources and the Prudential Insurance Co. of America, which together have voting control of 65 percent of Hadson's common stock, have approved the merger. Hadson's shareholders will receive $2.75 in cash for each share of common stock. (em LG
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