Let's see. If Chevron is based in California and controls Dynegy which may be about to buy the enfeebled Enron, does that mean California is about to use what's left of Enron to turn around and screw Texas power consumers ?
Hard to keep up with this one. Just bury the beast and try a better system. Or you might say it's time to Lay this thing down.
Message 16622381
By Christina Cheddar
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Over the last few days, Apache Corp. (APA) has unwound
nearly all of its hedges on natural-gas prices due to concerns about what would
happen to the marketplace for energy derivatives if Enron Corp. (ENE) collapsed.
According to Tony Lentini, a spokesman for the Houston natural-gas producer,
many of the hedges were established to lock in the value of acquisitions the
company made.
Apache unwound all but one hedge, a transaction that involved Enron and other
parties, Lentini said.
Apache has a gain of about $70 million from the various transactions, but the
company hasn't determined yet how the gain will be accounted for in its
financial results, the spokesman said.
Apache has been an outspoken critic of the merchant energy trading because of
the company's perception that the system is underregulated and creates excessive
energy price volatility.
-Christina Cheddar, Dow Jones Newswires; 201-938-5166;
christina.cheddar@dowjones.com >>>
siliconinvestor.com
Reports: Dynegy Close on Enron Deal
HOUSTON, Nov 08, 2001 (AP Online via COMTEX) -- Dynegy Inc. is reportedly in the late stages of discussions with rival Enron Corp. to buy the embattled energy-trading
company for about $8 billion in stock, or roughly $10 per share.
Under the terms of the deal, Enron would receive an immediate $1.5 billion cash infusion from oil giant Chevron Texaco, which holds a 27 percent stake in Dynegy, the New
York Times reported on its Web site Wednesday night, citing executives close to the discussion.
Chevron Texaco would provide an additional $1 billion injection at a later date, the Times reported, while Dynegy would assume $12.8 billion in Enron debt, plus billions of
dollars in other debt that has been kept off the beleaguered company's balance sheet and has been a significant contributor to its current problems.
Enron Chairman Kenneth Lay would not be given any formal management position in the combined company, although he would have a seat on its board, The Wall Street
Journal reported, citing people familiar with the matter.
The boards of both companies were meeting late Wednesday and could announce the deal as early as Thursday, although the Journal reported that the transaction could
still be derailed. |
