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Gold/Mining/Energy : Enron - Natural Gas Industry -- Ignore unavailable to you. Want to Upgrade?

To: Brasco One who wrote (649)	11/26/2001 12:41:34 PM
From: Softechie	Read Replies (3) \| Respond to of 1433

Dynegy Optimistic That Enron Merger Will Succeed - FT 26 Nov 05:40 LONDON -(Dow Jones)- Dynegy Inc. (DYN) remains optimistic, after further review of Enron Corp.'s (ENE) finances last week, that it will be able to buy the company, the Financial Times reported Monday. Dynegy said that it, "remained optimistic for the potential of the merger to be completed, and in the time frame we originally announced - six to nine months," the FT reported. Critical investment in Enron by J.P. Morgan Chase and Citigroup will proceed only if an unofficial pact between Enron, Dynegy, and Enron's lenders and credit rating agencies remains intact, the report said. Investment from these two is likely to total between $500 million and $1 billion, while Enron continues to look for a further $500 million from private equity firms. The deal suffered a setback last week, when a regulatory filing revealed a greater debt burden than some investors had realized. Enron's share price fell following the report, to $4.74 from $9.00. A $1 billion secured credit line from J.P. Morgan Chase and an extension of a $690 million repayment due Tuesday weren't enough to keep the share price from falling. This led to speculation that Dynegy was considering renegotiating its all-stock bid, now at $9.3 billion, compared with Enron's market value of $3.5 billion, said the report. Renegotiating the deal wouldn't have any impact on Enron's finances, unnamed sources told the FT. But if Dynegy pulled out of the deal altogether, there might be no cash infusion from J.P. Morgan chase and Citigroup. Credit ratings agencies could then downgrade Enron's debt to junk, forcing partners to repay debts, the report said. -By Sarah Spikes, Dow Jones Newswires; +44-(0)20-7842-9345; sarah.spikes@dowjones.com (This story was originally published by Dow Jones Newswires) Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved