Off Topic, but wow. ENE
Enron's Death Spiral
Energy Giant Faces Bankruptcy After Dynegy Nixes Merger
By Ramona Schindelheim
abcnews.go.com
N E W Y O R K, Nov. 28 — Earlier this year, energy giant Enron was No. 10 in the Fortune 500. Today it is a worth less than $1 a share and on the verge of collapse.
In a decision that could spell the end for the Houston-based firm, Dynegy Inc., one of its chief rivals, called off its proposed deal to buy Enron today. And analysts believe there are no other white knights out there interested in taking over Enron. The company's credit rating was downgraded to junk status by two major ratings firms, Standard & Poor's and Moody's.
Earlier in the day, trading in Enron and Dynegy stocks was halted for two hours. Enron stopped trading at $1.20. It reopened at 91 cents and closed the day at 62 cents. Dynegy, also based in Houston, closed at $35.96, down $4.93 on the day.
Enron's deflated stock price represents a stunning reversal for a company that reached a high of $84.87 a share a year ago.
With the collapse of the proposed Dynegy-Enron merger, it is now likely that Enron will file for bankruptcy.
Thirty days ago Enron was the leading energy trading company in the United States. Today, its key business — Enron Wholesale Services — is virtually worthless. |
