Bidding war continues for LV utility

Southern Union is offering $33.50 a share, a 15 percent premium to Southwest Gas's closing price Tuesday. ONEOK is offering $30.

Southern Union's high debt made it an unattractive merger partner, Southwest said. Also, Southwest said regulators would likely delay approval of a Southern Union buyout for an unacceptably long time.

Nevertheless, Southwest said it's considering Southern Union's new offer. If Southwest Gas immediately accepts the new offer, Southern Union said it will pay interest that, together with dividends, will provide Southwest shareholders with a 6 percent annual rate of return beginning Feb. 15 until the transaction closes.

Southwest sells natural gas to 1.2 million customers in Nevada, Arizona and California. Austin, Texas-based Southern Union has about 1 million gas customers in Texas, Missouri, Florida and Mexico. Tulsa, Okla.-based ONEOK sells gas to 1.4 million customers in Oklahoma and Kansas.

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