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February 24, 2006

National Grid in talks to buy KeySpan

National Grid Plc., owner of Rhode Island's electric utility, confirmed that it is has been in discussions to purchase KeySpan Corp., the biggest natural-gas seller in the Northeast and the owner of the liquefied natural gas terminal at the Port of Providence.

National Grid, which is based in the United Kingdom, earlier this month agreed to buy the Rhode Island operations of New England Gas Co. from Southern Union for $498 million in cash and $77 million in debt.

Keyspan distributes gas to 2.6 million customers in Massachusetts, New York and New Hampshire.

The Wall Street Journal earlier reported that National Grid offered $42 per share, compared with Keyspan's closing share price of $41.09 yesterday.

Bloomberg News reported last week that Consolidated Energy, a utility that Serves New York City, had also approached Keyspan about buying it.

-- With reports from Bloomberg News and Journal staff

Posted by Jack Perry  at 10:34 AM | Permalink