Columbia Rejects Bid From NiSource

Natural gas company Columbia Energy Group on Sunday rejected a $6.1-billion takeover bid from utility NiSource Inc. and said it would begin exploring other alternatives, including a merger.

The announcement came one week after NiSource, which first launched a $5.7-billion bid for Herndon, Va.-based Columbia in June, sweetened the all-cash bid to $74 a share, up from $68.

In rejecting the offer, Columbia said its advisors had determined the bid was financially inadequate. It also expressed concern about regulatory hurdles associated with the offer. But Columbia also opened the door to a potential transaction with a third party.

*

Guide to Our Staff: Need to reach Business section reporters or editors? A guide to the section’s staff can be found at: https://www.latimes.com/bizstaff.