BUSINESS MEMO: PIPELINE MERGER

KN Energy Inc. of Lakewood, Calif., and Kinder Morgan Inc. of Houston, Texas, owners of natural gas pipelines, have agreed to a merger in a deal valued at $783 million. The company will be called Kinder Morgan Inc., and Richard D. Kinder, Kinder Morgan chairman, will head the new entity.

The companies expect to close the deal in the fourth quarter. The new company will operate more than 30,000 miles of oil and natural-gas pipelines and have combined revenues of $4.5 billion.,

Kinder, formerly of Cape Girardeau, is chairman and chief executive officer of Kinder Morgan, which owns and operates one of the largest product pipeline systems in the United States, serving customers in 16 states. Kinder Morgan operates 24 bulk terminal facilities that transload more than 40 million tons of coal, petroleum coke, cement and other products annually.