July 12, 2006
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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KeySpan Corporation
-------------------
(Name of Registrant as Specified in Its Charter)
(N/A)
-----
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Attached is a copy of a press release issued by National Grid and KeySpan
Corporation.
nationalgrid KEYSPAN
NATIONAL GRID ACQUISITION OF KEYSPAN CLEARS REVIEW OF
THE COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES
Westborough, MA and Brooklyn, NY (July 12, 2006) - National Grid (LSE: NG.L,
NYSE: NGG) and KeySpan Corporation (NYSE: KSE) today announced they have been
notified that the Committee on Foreign Investment in the United States has
completed review of National Grid's proposed acquisition of KeySpan and has
determined that there are no issues of national security sufficient to warrant
an investigation of this transaction.
The Committee on Foreign Investment in the United States is an interagency
committee chaired by the Department of the Treasury authorized to review foreign
acquisitions of U.S. companies.
Remaining approvals for the acquisition include authorization by the Federal
Energy Regulatory Commission and by the New York Public Service Commission and
the New Hampshire Public Utilities Commission.
On February 27, 2006, National Grid and KeySpan announced an agreement for
National Grid to acquire KeySpan, which will materially expand the size of
National Grid's US operations and create the third-largest gas delivery utility
in the United States. The acquisition is a natural extension of National Grid's
business and will result in electricity and gas businesses serving nearly eight
million customers in the New York State and New England regions.
About National Grid:
- --------------------
National Grid is an international energy delivery business with principal
activities in the regulated electricity and natural gas industries. In the U.S.,
National Grid transmits and distributes electricity and natural gas to nearly 4
million customers across 29,000 square miles of Massachusetts, New Hampshire,
New York and Rhode Island.
KeySpan will be National Grid's fifth US acquisition. Previously, it had
acquired New England Electric System and Eastern Utilities Associates (2000),
and Niagara Mohawk (2002). Earlier this year, National Grid announced that it
will acquire the Rhode Island gas distribution business of Southern Union
Company.
The company owns the high-voltage electricity transmission network in England
and Wales and operates the system across Great Britain. It also owns and
operates the high-pressure gas transmission system in Britain and, through its
natural gas distribution business serves over 11 million meters in homes and
businesses in Britain. In addition, it has a number of businesses operating in
related areas such as LNG importation, wireless infrastructure for broadcast and
telecommunications, property, metering and interconnectors. For more
information, visit National Grid's web site at www.nationalgrid.com.
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National Grid/KeySpan (cont.)
Pg 2.
About KeySpan:
- --------------
A member of the Standard & Poor's 500 Index, KeySpan Corporation (NYSE:KSE) is
the fifth largest distributor of natural gas in the United States and the
largest in the Northeast, operating regulated gas utilities in New York,
Massachusetts, and New Hampshire that serve 2.6 million customers. These
customer-focused businesses are complemented by a portfolio of service companies
that offer energy-related products, services, and solutions to homes and
businesses. KeySpan is also the largest electric generator in New York State,
with approximately 6,650 megawatts of generating capacity that provides power to
1.1 million customers of the Long Island Power Authority (LIPA) on Long Island
and supplies approximately 25 percent of New York City's capacity needs. KeySpan
also operates LIPA's transmission and distribution system under contract to
LIPA. In addition to these assets, KeySpan has strategic investments in pipeline
transportation, distribution, storage, and production. KeySpan has headquarters
in Brooklyn, New England, and Long Island. For more information, visit KeySpan's
web site at www.keyspanenergy.com.
Media Contacts:
National Grid
Alberto Bianchetti
315-428-6932
KeySpan
718-403-2503
24-hour pager: 516-824-1241
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Additional Information and Where to Find It
- -------------------------------------------
In connection with the proposed merger, the Company has filed a definitive proxy
statement with the Securities and Exchange Commission. BEFORE MAKING ANY VOTING
OR INVESTMENT DECISION, THE COMPANY STOCKHOLDERS ARE URGED TO READ THE
DEFINITIVE PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT THE
PROPOSED MERGER. The definitive proxy statement is also available free of charge
at the Securities and Exchange Commission's website, www.sec.gov, and
stockholders of the Company are also able to obtain additional copies of the
definitive proxy statement free of charge by directing their requests to KeySpan
Corporation One MetroTech Center, Brooklyn, New York 1120-3850.
The Company and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from its stockholders in connection
with the proposed merger. Information concerning the interests of the Company's
participants in the solicitation is set forth in the Company's proxy statements
and Annual Reports on Form 10-K, previously filed with the Securities and
Exchange Commission, and in the definitive proxy statement relating to the
merger.
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