Hi SB,
Re: you noted (at least implied) that DYN would eventually acquire ENE.
It may well still come to pass, at least in part(s). As you may recall, in mid-November I commented that I saw no reason why Watson would want to purchase ENE for 0.2685 DYN shares plus assumption of debt. My post clearly indicated that I didn't understand why DYN wouldn't wait until the equity holders were wiped out. So, today what we have is DYN purchasing as much of the Northern Natural Gas Preferred that it can get its hands on (according to EnergyNewsLive today) and I believe that they hope to gain a controlling interest in that asset. The demise of EnronOnline is a boon to Williams, DYN, Mirant and a number of other traders, and other exchanges.
So, I'm not sure I see your point about saying I'm not much more right than greenlaw. I don't think your recollection of my comments is accurate. Though I do think DYN/Chevron still has its eyes on some of the ENE assets, which will come cheap in a distress sale, and leave the liabilities for others to endure.
Just speculating for a second here, perhaps there was some communication between DYN and the bankers who were desperately on the hook as of a month ago. The DYN announcement on Nov. 9 bought the banks an extra three weeks to try to unwind positions with ENE. The calm decline in trading on the EnronOnline exchange over the past few weeks indicates some "guiding hand" at work. I certainly wouldn't be surprised to find out in a year's time that there was some sort of a quid pro quo, with DYN buying the pipeline assets from the banks which now have first call on them due to the covenants of the tranche of credit lines that were extended at the end of October. DYN has simply made the transition more orderly for the banks. As I say, just a speculation on my part. But in the end, I believe we will simply see ENE dismembered.
-R. |
