El Paso Natural Gas Company and Eastex Energy Inc. Set Deadline for Merger Election

Strategic Insights -

El Paso Natural Gas Company and Eastex Energy Inc. have announced a merger plan that will give Eastex stockholders the option to receive cash or El Paso common stock in exchange for their shares. Stockholders must submit their election forms by September 11, 1995, to be eligible for the cash option, while those who fail to do so will be deemed to have elected for El Paso common stock. The special meeting of Eastex stockholders to vote on the proposed merger is scheduled for September 12, 1995.

Key Takeaways:

  • The merger between El Paso Natural Gas Company and Eastex Energy Inc. will give Eastex stockholders the option to receive either $4.50 in cash or between 0.1485 and 0.1629 of a share of El Paso common stock for each share of Eastex common stock.
  • To make a valid election, Eastex stockholders must submit a properly completed election form to The First National Bank of Boston, the exchange agent, by 5:00 p.m., New York City time, on September 11, 1995.
  • Stockholders who fail to submit a valid election form by September 11, 1995, will be deemed to have elected to receive El Paso common stock.
  • The special meeting of Eastex stockholders to vote on the proposed merger is scheduled for September 12, 1995.
  • El Paso Natural Gas Company owns and operates one of the nation's largest field and mainline natural gas transmission systems.
  • Eastex Energy Inc. is a natural gas merchant specializing in the purchase, gathering, transportation, storage, and sale of natural gas on a nationwide basis.

Statistics:

  • September 11, 1995: Deadline for Eastex stockholders to submit their election forms for the merger.
  • January 1, 1980 - present: Span of time during which El Paso Natural Gas Company has owned and operated its natural gas transmission systems.
  • 1995: Year in which the merger between El Paso Natural Gas Company and Eastex Energy Inc. is taking place.

Sources:

  • PRNewswire announcement, August 28, 1995
  • Contact information for Norma F. Dunn, CPA, vice president, investor & public relations, El Paso Natural Gas Company, 915-541-5443