Nicor-Dynegy Venture May Face SEC Suit

Nicor Inc., the third-biggest U.S. distributor of natural gas, said the Securities and Exchange Commission may sue its venture with Dynegy Inc. for fraud.

The SEC’s staff plans to recommend that the agency pursue a securities fraud case, Nicor said in a filing, without providing details.

The U.S. attorney for the Northern District of Illinois and a federal grand jury are investigating the matter, a spokesman said.

Shares of Naperville, Ill.-based Nicor fell $3.47 to $23.85, and Dynegy shares fell 4 cents to $2.26, both on the NYSE.

From Bloomberg News