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The Deal: K N Energy Inc. has agreed to merge with Kinder Morgan Inc. in a deal valued at $783 million. K N Energy will issue 41.5 million shares of stock to acquire Kinder's shares and assume $140 million of debt. The combined company will have sales of $4.6 billion. Lower natural-gas prices and high interest expenses have decreased the K N Energy's stock prices this year. As a result, Sempra Energy recently cancelled its deal to acquire K N Energy because of K N Energy's weaker-than-expected performance. The merger should add to earnings and reduce K N Energy's debt-to-equity ratio from 72% to 65%. On the news, Kinder rose 25 cents, or 0.7%, to $38.625/share. K N Energy also rose $6.6875, or 55%, to $18.875/share.