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Pastimes : The California Energy Crisis - Information & Forum -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (991)	10/22/2001 1:23:42 PM
From: Sam	Read Replies (1) \| Respond to of 1715

Enron shares wilt amid SEC probe By Leticia Williams, CBS.MarketWatch.com Last Update: 1:03 PM ET Oct. 22, 2001 WASHINGTON (CBS.MW) -- Enron Corp. shares plunged more than 22 percent Monday after largest oil trader said the Securities and Exchange Commission is probing transactions between the company and outside partnerships run by its chief financial officer. The company's (ENE: news, chart, profile) shares dropped to a three-year low of $20.10 on the New York Stock Exchange. The shares, which were trading as high as $85 each at the beginning of the year, were last at $20.43. The oil and gas giant said that the SEC has asked it to voluntarily submit information regarding certain related-party transactions. "We will cooperate fully with the SEC and look forward to the opportunity to put any concern about these transactions to rest," Chairman and Chief Executive Kenneth Lay said in a statement. The Wall Street Journal reported last week on a number of transactions involving Chief Financial Officer Andrew Fastow, who until recently ran a limited partnership that bought assets from Enron. A spokeswoman for the Houston-based company said she could not offer further comment. An SEC spokesperson was not available immediately for comment. The inquiry is the latest in a string of negative developments announced recently by Enron, which said the related-party transactions have been previously disclosed in filings with the SEC. The company's shares traded lower last week after it surprised analysts with a $1.2 billion charge against equity, the day after the company announced its third-quarter results. Enron also reported a separate $1 billion charge for the quarter due to investments in telecommunications, retail energy sales and water businesses. See full story. In addition, Enron shares took a hit in August, in reaction to the departure of Jeff Skilling as president and CEO. It had been expected that Skilling would eventually take over from Lay at the top of Enron.