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Shares of NiSource Inc. have been trading at an all-time high amid media speculation that the company is the target of an acquisition by Dominion Resources Inc. Analysts weighing in on the postulated deal see value for Dominion shareholders stemming largely from the potential to drop gas assets into a planned master limited partnership.
A Dec. 20, 2013, report by dealReporter, part of the Mergermarket Group, said Dominion was raising more than $10 billion in debt to acquire a utility in the Midwest. The initial report set off a round of media speculation that NiSource, with a market capitalization of $10.81 billion as of Jan. 22, could be the target, and the Merrillville, Ind.-headquartered company's share price has been climbing steadily upward ever since. In midday trading Jan. 22, NiSource shares rose as high as $34.66, though they finished at $34.32, unchanged from the previous day.
NiSource and Dominion have declined to comment on the deal rumors. But the potential for NiSource's gas infrastructure in the Marcellus...