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Liked the last quote from the following piece:
"I think they're very nervous," the trader said. "The Enron people think they're better than the Dynegy people, and the Dynegy people think 'we're buying them, so we can just pick through their stuff.'"
Enron Trader Resumes Hit The Streets
By Kristen McNamara and Jennifer Morrow
NEW YORK (Dow Jones)--"Noah's Ark" should be the name of the company that emerges from the planned combination of Enron Corp. (ENE) and Dynegy Inc. (DYN), according to energy markets lore these days.
After all, the logic goes, there will be two of everyone.
Enron traders aren't so sure of that, as energy firms can attest.
"In the past 60 days, the number of resumes from Enron personnel has increased substantially," said William Begley, head of the energy and utilities practice at Heidrick & Struggles (HSII), an executive recruiting firm in Houston.
Resumes are coming from all units at Enron, but the number of those from traders has grown significantly during the period, he added. Other recruiting firms said that Enron traders have become more receptive to unsolicitied headhunting calls lately.
No one knows for sure how jobs will shake out at Enron, as the company goes through hard times and faces a merger with Dynegy. Recruiters and Enron employees are mixed over how much actual fallout there will be.
One thing they agree on, though, is that if Enron traders do leave, they aren't guaranteed to find new jobs quickly despite their credentials -- which are regarded as sterling in the energy industry. If energy markets contract as a result of Enron's troubles, the job market for traders could flood.
Dynegy plans to acquire Enron in a stock swap currently valued at $10.12 billion. The companies confirmed the deal late last week. Shares in both companies rose in heavy trading Monday as investors weighed the planned deal. Some uncertainty remains around the fate of the merger, partly because of the numerous regulatory hurdles it faces.
Enron, still the largest energy trading company in the world, has suffered a massive setback in the past month. Four weeks ago, a $1.2 billion reduction of shareholder equity kicked off a slide in the company's share price, and prompted a U.S. Securities and Exchange Commission investigation.
Recruiters started seeing more resumes from Enron before the company's troubles came to a head. As early as this summer when former Enron executive Jeffrey Skilling left the company, employees at the company's non-core units have been looking for jobs, recruiters said.
Electricity and natural gas traders at Enron have long been considered some of the smartest participants in U.S. energy markets. The company is a market maker in both gas and electricity, meaning that its prices for both commodities are benchmarks for traders throughout the markets.
Enron led the effort to deregulate U.S. power markets, and has been one of the most vocal lobbyists for deregulation at the state and federal levels over the years.
"Because Enron is such a large counterparty in the energy trading sector, all of its trading partners, everyone, is hoping the thing gets resolved," said Bruce Peterson, managing director at Korn/Ferry Intl (KFY) in Houston, an executive search company. "The whole industry is definitely affected by what has happened at Enron. Until it's sorted out, you have a tremendous amount of uneasiness. It needs to get resolved."
It will be essential for Dynegy to keep some of the core leadership from Enron, analysts say. By retaining the best, Dynegy should be able to secure other strong Enron employees.
"In our view, Enron's energy trading and marketing personnel are arguably the most talented and definitely the most profitable group in the industry," Prudential Securities analyst M. Carol Coale said in a research note Monday. "We believe that Dynegy must focus on retaining these valuable traders and marketers if the new company is to realize its full potential in the wholesale segment."
Enron President and Chief Operating Officer Greg Whalley, who will be at Dynegy after the merger as an executive vice president, said in a conference call on Monday that he believes the new company will retain its traders. "Most traders want to be part of the winning team," he said.
Some recruiters believe that although many Enron employees are floating resumes, there won't be much actual fallout. Enron's trading operation employs between 1,000 and 1,500 people in North America; Dynegy's operation is staffed by 300.
"But with a few trimmings here and there you won't see a lot of Enron traders on the street, unless they don't like what they hear from Dynegy," said Jack Carr managing director of Prime Energy Partnership, a search and recruiting company based in the UK, with an office in Greenwich, Connecticut.
An experienced energy trader with four years of experience can earn $125,000-$150,000 plus a bonus, according to Carr.
Right now, Enron traders are feeling disappointed and confused, according to one trader at another company who wouldn't allow his name to be used.
"I think they're very nervous," the trader said. "The Enron people think they're better than the Dynegy people, and the Dynegy people think 'we're buying them, so we can just pick through their stuff.'"
- By Kristen McNamara; Dow Jones Newswires; 201-938-2061; kristen.mcnamara@dowjones.com; Jennifer Morrow; 201-938-4377; jennifer.morrow@dowjones.com
(END) Dow Jones Newswires 13-11-01
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