Texas company sued over merger talks

Southwest Gas Corp. of Las Vegas, which has struck a merger deal with an Oklahoma company, filed suit against a Texas suitor that keeps raising the ante with unsolicited offers.

Austin, Texas-based Southern Union Co. was named in the suit filed this week in U.S. District Court in Las Vegas.

Southwest accuses Southern Union of breach of contract and violating an agreement not to reveal confidential information it was given when it offered to buy Southwest.

Tulsa, Okla.-based ONEOK Inc. appeared to be on the verge of sealing a merger deal with Southwest in December when it offered $28.50 per share. Southern Union followed with a $32-per-share bid, forcing ONEOK to increase its offer to $30. Southern Union then offered $33.50 a share. Southwest is sticking with the $30 offer from ONEOK, saying Southern Union's financial situation harms its ability to complete a merger.

Southern Union earlier filed suit against Southwest to circumvent its board of directors and take the merger decision to shareholders.

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