ONEOK sticking with bid for LV utility

TULSA, Okla. -- ONEOK Inc. said it won't top Southern Union Co.'s bid for Southwest Gas Corp., saying its lower offer is superior.

"If this were solely a matter of price, there would have been no need for Southern Union to raise" its bid, ONEOK Chairman Larry Brummett said in a statement. Oneok, which has been trying to buy Southwest since December, raised its offer on Monday to $912 million in cash, or $30 a share, plus the assumption of $860 million in debt and preferred stock.

Southern Union made an unsolicited offer of $32 a share in February and raised it on Tuesday to $33.50 a share, or $1.02 billion plus the assumption of debt.

Las Vegas-based Southwest Gas accepted ONEOK'S offer on Monday, but said that in light of Southern Union's higher bid on Tuesday, it's again considering both companies' offers.

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