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NUI STATEMENT ON PENNSYLVANIA ENTERPRISES REJECTION OF MERGER OFFER

NUI STATEMENT ON PENNSYLVANIA ENTERPRISES REJECTION OF MERGER OFFER
 BEDMINSTER, N.J., Dec. 9 /PRNewswire/ -- NUI Corporation (NYSE: NUI) issued the following statement today:
 "We understand from press reports that Pennsylvania Enterprises, Inc. (NASDAQ: PENT) has rejected our offer to merge the companies' operations, which had been solicited by PENT's largest shareholder, Lindner Management Corporation. On behalf of the ratepayers, communities, employees and shareholders of PENT and NUI, we are disappointed by PENT's rejection. The planned $25 million cash infusion, $10 million of which would have been earmarked exclusively for improving utility service and $15 million for debt reduction, would have significantly improved service to the communities currently served by PENT. Further, this $35 a share offer represents a premium to shareholders of over 50 percent at the time of the offer," said John Kean, president and chief executive officer.
 Following is a letter to the board of directors of Pennsylvania Enterprises, Inc. from Eric Ryback, on behalf of the Lindner Fund, Inc.:
 As you know, I represent the largest shareholders of Pennsylvania Enterprises, Inc. (PEI) and have long expressed my interest in protecting and enhancing the value of PEI. As you also know, I recently commenced litigation on behalf of PEI in a case styled "The Lindner Fund, Inc., et al. v. Kenneth L. Pollock," Civil Action No. 91-6901 (E.D.Pa.), to recover the very substantial damages being sustained by PEI.
 I am writing to urge you to actively solicit bids for the sale of PEI by all reasonable and available means. The recent stock offering you have caused PEI to file with the Securities and Exchange Commission is wholly unacceptable. By actively inviting bids for PEI and by negotiating in good faith the terms of bids received, the value of PEI will be enhanced and the shareholders and ratepayers alike will benefit. There are numerous entities who in the past have expressed serious interest in the purchase of PEI, and I strongly recommend that you pursue with them their current interest in purchasing PEI. I also counsel you to instruct PEI's traditional investment banker, Salomon Brothers, to actively market PEI.
 -0- 12/9/91
 /CONTACT: Alexandra Pruner of NUI Corporation, 908-781-7815/
 (NUI PENT) CO: NUI Corporation; Pennsylvania Enterprises, Inc.; Lindner Management
 Corporation ST: New Jersey, Pennsylvania IN: UTI SU: FC-SM -- NY075 -- 0734 12/09/91 17:29 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Dec 9, 1991
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