NiSource pipelines to shale boom spur deal speculation

NiSource, the owner of natural gas pipelines and utilities in the upper U.S. Midwest, is a prime acquisition candidate for companies seeking to profit from the shale-gas boom.

NiSource shares surged to an all-time high last week amid takeover speculation fueled by a December report that Dominion Resources was raising money for a purchase. An all-cash deal for NiSource would give Dominion complementary gas assets and boost its earnings, even if it paid a 20 percent premium to NiSource’s closing price Jan. 17 of $33.89, according to Sanford C. Bernstein & Co.