BUZZ-NiSource falls on decision to remarket preferred convertible shares

** Shares of utilities firm NiSource NI.N fall 3.3% to $26.82 premarket

** Co intends to remarket 862,500 of its preferred convertible shares

** Each outstanding preferred share will automatically convert into shares of NiSource common stock between 34.91 and 41.02 as of March 1 - co

** Dividends on preferred stock may become payable, subject to sucessful marketing

** NiSource will directly receive any of the proceeds; but a portion will be used to purchase a portfolio of U.S. Treasury securities

** NI up 1.2% this year, until last close

(Reporting by Purvi Agarwal in Bengaluru)

((Purvi.Agarwal@thomsonreuters.com))