Monday, June 26, 2006

Sandell Asset Management Discloses 9.62% Stake in Southern Union (SUG), Urges Steps to Maximize Shareholder Value

In an 13D filing this morning on Southern Union Company (NYSE: SUG), 9.62% holder Sandell Asset Management disclosed a letter sent to the company's Board of Directors outlining steps they believe the company could take to maximize shareholder value.

Among the groups suggestions were that the company: 1. create a tax advantageous master limited partnership, 2. continue to sell the remaining local gas distribution utilities, and 3. raise the annual dividend to $1 per share to bring the Company's dividend policy more in line with peers, and consider putting itself up for sale.


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