Consol Energy terminates proposed stock-for-stock acquisition of CNX Gas

By Lisa Kerner

Charlotte, N.C., March 25 - Consol Energy, Inc. announced it has terminated its proposed exchange offer for the shares of CNX Gas Corp. common stock it does not currently own.

On Jan. 29, it was reported that Consol, with an 81.7% ownership interest in CNX Gas, would offer to acquire all of CNX Gas' outstanding shares in a stock-for-stock transaction valued at $932 million. CNX Gas stockholders would have been offered 0.4425 of a share of Consol common stock, the equivalent of $33.70, for each outstanding share of CNX Gas common stock.

According to a Consol news release, two key factors led to the termination: Price demands from certain CNX Gas stockholders were considered to be unreasonable, and recent stock market volatility has made it difficult to accurately assess the ultimate cost of the transaction.

Consol said it does not intend to sell or divest itself of the CNX Gas shares it owns and does intend to buy more shares of CNX Gas "from time to time."

Consol established CNX Gas as a public company two years ago.

Consol is a high-BTU bituminous coal and coal bed methane company based in Pittsburgh.

CNX Gas is an independent natural gas exploration, development, production and gathering company. It is also located in Pittsburgh.

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