Louis Dreyfus and Dominion Receive Go-Ahead
Louis Dreyfus Natural Gas Corp. announced expiration of the waiting period under the Hart-Scott-Rodino Act for the proposed acquisition of the company by Dominion Resources, Inc. Expiration of the waiting period means the companies are free to complete the transaction under federal antitrust laws. The transaction remains subject to approval by Louis Dreyfus Natural Gas shareholders, who meet on October 30.
Louis Dreyfus Natural Gas has agreed to settle a lawsuit filed September 10, 2001 against the company and members of its board of directors. The suit sought to rescind the acquisition agreement between Louis Dreyfus Natural Gas and Dominion.
Additionally, Louis Dreyfus Natural Gas and Dominion have agreed with trustees of the two outstanding series of Louis Dreyfus Natural Gas public notes that Consolidated Natural Gas Company ("CNG"), a wholly owned subsidiary of Dominion, will guarantee this debt. Under the transaction's legal structure, the successor to Louis Dreyfus Natural Gas will become a subsidiary of CNG upon completion of the acquisition.