Reply #45: UPDATE 2-GE, Canadian firm to buy U.S. gas pipeline system

[54anickel]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-07-11T155540Z_01_N11469453_RTRIDST_0_MANUFACTURING-GE-PIPELINE-UPDATE-2.XML

NEW YORK, July 11 (Reuters) - General Electric Co. (GE.N: Quote, Profile, Research) and Canada's biggest institutional investor agreed to buy the Southern Star natural gas pipeline system from AIG Highstar Capital for $362 million, plus the assumption of $476 million in debt and preferred stock, GE and its partner said on Monday.

The purchase by GE and Canada's Caisse de depot et placement du Quebec is part of General Electric's efforts to increase its $10 billion energy assets portfolio at its commercial finance arm.

The acquired assets include compressor stations and gas storage fields serving local gas distribution companies in Missouri and Kansas, the two companies said. The deal is expected close in the third quarter.

The natural gas pipeline spans 6,000 miles in seven Midwestern and Southern U.S. states.

GE said the deal, its second joint investment with the Canadian partner, nearly doubles its pipeline assets. It will hold a 60 percent stake in Southern Star, and its partner will own 40 percent.

more...