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Goldman, Morgan Stanley Seek Dominion Deal, Source Says

Investment units of MorganStanley and Goldman Sachs Groupare working with a number of private equity firms on a possible bid for the oil and gas assets of utility company Dominion Resources, according to a source familiar with the situation.

The plan involves private equity firms including Madison Dearborn Partners, Warburg Pincus, First Reserve and Carlyle Group and its affiliate Riverstone Holdings.

Dominion Resources said in November that it planned to sell the assets, which analysts have said could fetch anywhere from $13.5 billion to $20 billion.

A second group including Blackstone Group, Texas Pacific Group and Kohlberg Kravis Roberts & Co. is exploring its own offer for the Dominion oil and gas assets, the source said.

The company said at the time that it planned to sell the assets as one unit, but sources have said it could prove tough to put together a transaction for all the assets and that Dominion could opt to sell the assets in packages.

Goldman Sachs and Morgan Stanley declined to comment. The private equity firms either had no comment or were not immediately available for comment. Dominion Resources was not immediately available for comment.

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