8-KOther Events

ONEOK INC /NEW/ 8-K Report (Jan 8, 2002)

Filed January 8, 2002For Securities:OKE

Summary

This 8-K filing from ONEOK Inc. on January 8, 2002, details a significant legal development concerning the terminated merger agreement with Southwest Gas Corporation. A Federal District Court ruling on January 7, 2002, has dismissed Southwest Gas's claim for $308 million in damages against ONEOK. This ruling, combined with a prior decision on Southern Union's claim, substantially lowers ONEOK's potential liability for actual damages from over $1 billion to less than $7 million. While this ruling is a positive development for ONEOK, it's important to note that both ONEOK and Southwest Gas still have outstanding claims against each other related to the failed merger. Additionally, the court granted Southern Union's motion for summary judgment, which eliminates ONEOK's claims against Southern Union. Investors should monitor any further developments regarding the remaining claims between ONEOK and Southwest Gas.

Key Highlights

  • 1Federal Judge Roslyn O. Silver ruled that Southwest Gas Corporation cannot pursue its $308 million damage claim against ONEOK.
  • 2The ruling significantly reduces ONEOK's exposure to actual damages from over $1 billion to less than $7 million.
  • 3This ruling is a consequence of a terminated merger agreement between ONEOK and Southwest Gas.
  • 4Judge Silver also granted Southern Union's motion for summary judgment, eliminating ONEOK's claims against Southern Union.
  • 5ONEOK and Southwest Gas still have pending claims against each other related to the merger termination.
  • 6The filing includes a press release dated January 7, 2002, as an exhibit.
  • 7Jim Kneale, Senior Vice President, Treasurer and Chief Financial Officer, signed the report.

Frequently Asked Questions

The primary financial impact is the significant reduction in potential damage liability for ONEOK. The court's ruling dismisses a $308 million claim from Southwest Gas and limits overall actual damages exposure to less than $7 million, down from over $1 billion. This substantially de-risks the company from a major legal contingency.

No, not all claims are resolved. While Southwest Gas's $308 million claim against ONEOK has been dismissed, both ONEOK and Southwest Gas still have outstanding claims against each other concerning the terminated merger agreement.

The court granted Southern Union's motion for summary judgment, which means ONEOK's claims against Southern Union have been eliminated.

The filing includes a press release dated January 7, 2002, which likely contains more details about the court's ruling and the company's perspective. The report also confirms the filing was made by ONEOK's Senior Vice President, Treasurer, and Chief Financial Officer.