Azurix May Sell Wessex Water After CEO Resignation, Paper Says:
8/29/00 12:41:00 AM
Source: Bloomberg News
URL: cnetinvestor.com
Bristol, Aug. 29 (Bloomberg) -- Azurix Corp., a water company formed by Enron Corp. two years ago, may sell Wessex Water, its U.K. unit, following the resignation of Azurix's chief executive on Friday, the Times of London reported, citing no one.
Houston-based Enron, which set up Azurix after the $2.8 billion acquisition of Wessex Water in 1998, planned to build a global water business based on Wessex's ''proven expertise'' until Azurix's stock price fell from a high of $23.88 last summer to around $5 prompting Chief Executive Rebecca Mark to resign, the newspaper said.
Enron picked Mark in September 1998 to head Azurix. Disappointing profits have pushed down Azurix shares by 74 percent since Enron sold two-thirds of the company to investors last year. The drop undermined Mark's plan to buy water treatment and sewage businesses using the company's stock, analysts said.
John Garrison, Azurix's new chief executive is reviewing all of Azurix's businesses in order to ''maximize shareholder value'' as Enron considers whether to keep its controlling stake in Azurix, the paper said. (Times 8/29 p. 19) |
