Enron President Says He's Reviewing Azurix's Future (Update1)
8/30/00 1:14:00 PM
Source: Bloomberg News
URL: cnetinvestor.com
Austin, Texas, Aug. 30 (Bloomberg) -- Enron Corp. President Jeffrey Skilling said the future of its Azurix Corp. affiliate will be decided after a new chief executive completes a review of the water company's operations within a few weeks.
Enron, the world's largest energy trader, created Azurix in 1998 to buy and build water-treatment systems worldwide. Disappointing earnings reports have sent Azurix's stock down by three-quarters from the day it went public in June 1999, and Chief Executive Rebecca Mark, who was a top Enron executive until going to Azurix, quit Friday. She also resigned from Enron's board.
John Garrison, Azurix's new chief executive, is reviewing options for the water company, said Skilling, who wouldn't say what possibilities are being considered.
''I think that in the next several weeks, we're going to sit down and review alternatives and make a decision at that time,'' said Skilling, who spoke in an interview after the Texas Interactive conference in Austin, Texas, today.
Enron set up Azurix after acquiring the U.K.'s Wessex Water for $2.8 billion in 1998. The Times of London, citing no sources, said yesterday that Azurix may sell Wessex now that Mark has quit.
Enron owns one-third of Azurix, and an investment group Enron helped set up, Marlin Water Trust, owns another third. Independent investors own the rest. Azurix went public at $19 a share in June 1999. The stock fell to an all-time low of 4.56 in intraday trading today.
Azurix was supposed to capitalize on efforts by government- owned water systems to sell off their businesses to investor-owned companies. Mark wanted to use Azurix's stock to buy other companies, but the plunge in the value of the shares thwarted her plans... |
