Enron Mentions ,
 KENNETH LAY: THE SHOES ARE DROPPING
BusinessWeek- 11/05/01
STOCKWATCH Enron shares resume fall, down 8 pct as SEC opens investigation
AFX News- 11/01/01
USA: RESEARCH ALERT-Merrill lowers Enron rating.
Reuters English News Service- 11/01/01
USA: UPDATE 1-Enron says gets $1 billion in secured credit.
Reuters English News Service- 11/01/01
Credit Suisse Says Citigroup Is Its Top Pick
Dow Jones News Service- 11/01/01
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against =
Enron Corporation
Business Wire- 11/01/01
Enron Obtains $1 Billion in Financing to Bolster Credit Facilities
Dow Jones Business News- 11/01/01
Enron: EnronOnline Trading Volume Above Average Wed
Dow Jones Energy Service- 11/01/01
USA: UPDATE 1-Before The Bell - Futures up with Microsoft.
Reuters English News Service- 11/01/01
Enron stock price plunges again
Associated Press Newswires- 11/01/01
Enron Misled Investors about Overvalued Assets and Off-Balance Sheet Deals =
-- ENE
PrimeZone Media Network- 11/01/01
Inside Money
TAKEOVER TALK INVIGORATES ENRON STOCK
Orlando Sentinel- 11/01/01
Enron Gets New Bank Loans But Its Bonds Fall Further
Capital Markets Report- 11/01/01
Enron Gets $1 Bln Loan to Boost Cash, Credit rating (Update3)
Bloomberg- 11/01/01
BG India: To Extend Enron Oil, Gas Field Operator Talks
Dow Jones Energy Service- 11/01/01
INDIAN FINANCIAL INSTITUTIONS FAIL TO RESOLVE DABHOL POWER ISSUE
Asia Pulse- 11/01/01
India: SCI to inject more funds into Greenfield Shipping
Business Line (The Hindu)- 11/01/01
Mariner Energy sells pipelines
The Daily Deal- 11/01/01
Enron and the curse of Drexel=20
CBS.MarketWatch.com- 11/01/01




In Business This Week: HEADLINER
KENNETH LAY: THE SHOES ARE DROPPING
By Stephanie Anderson Forest in Dallas=20
Edited by Monica Roman

11/05/2001
BusinessWeek
50
(Copyright 2001 McGraw-Hill, Inc.)
When Enron CEO Jeffrey Skilling resigned abruptly in August after six month=
s on the job, longtime Chairman Kenneth Lay assured investors that ``there'=
s no other shoe to fall.'' So much for the warning. On Oct. 16, the Houston=
-based energy giant reported its first quarterly loss in more than four yea=
rs after taking $1.01 billion in write-offs. It also disclosed a surprising=
 $1.2 billion charge to shareholder equity to help unravel complex transact=
ions between Enron and partnerships that until recently had been overseen b=
y former Chief Financial Officer Andrew Fastow. Then, on Oct. 22, Enron rev=
ealed that the Securities & Exchange Commission is probing those Fastow-rel=
ated transactions. Two days later, Enron promoted Jeff McMahon to CFO and a=
nnounced that Fastow will take a leave of absence. The setbacks have Lay, w=
ho has reclaimed the CEO post, scrambling. He must get operations back on t=
rack, fend off shareholder lawsuits, and, above all, rebuild credibility wi=
th investors.




Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

STOCKWATCH Enron shares resume fall, down 8 pct as SEC opens investigation

11/01/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Enron Corp shares were sharply lower, down more than 8 pct=
 at midsession, as investors continued to fear that the company's dealings =
with the LJM partnership could bring heavy financial reprisals following th=
e opening of a formal inquiry by the Securities and Exchange Commission, de=
alers said.=20
At 11.55 am, Enron was down 1.35 usd, or 9.57 pct, to 12.55.
The DJIA rose 61.23 points to 9,136.44, the S&P 500 gained 8.76 points to 1=
,068.40 points, the Nasdaq composite climbed 23.02 points to 1,713.40.=20
Yesterday, Enron announced the election of William Powers Jr to the board, =
to chair a Special Committee that will examine and take any appropriate act=
ions with respect to transactions between Enron and entities connected to r=
elated parties.=20
In addition to reviewing the transactions in question, the Special Committe=
e is charged with communicating with the SEC and recommending any other act=
ions it deems appropriate.=20
While the investigation might take time to draw a conclusion, the immediate=
 cash crunch Enron has been facing is expected to be resolved, said Merrill=
 Lynch analyst Duane Grubert.=20
One step in that direction came following Enron's announcement that JP Morg=
an and Salomon Smith Barney Inc have executed commitment letters to provide=
 1 bln usd in secured credit lines supported by the company's Northern Natu=
ral Gas and Transwestern Pipeline assets.=20
Over time, Enron has several other options to raise cash, including cutting=
 its 400 mln usd per year dividend, cutting back on its 1500 mln usd of cap=
ital spending, and monetizing its July 2002 right to convert debt into 11.5=
 million shares of EOG, said Grubert.=20
The danger for the company now is that a "real or fabricated confidence cri=
sis by Enron's counterparties threatens near term strength of the merchant =
segment. Competitors could get mean, and could prematurely shun Enron, whil=
e trying to steal market share," he said.=20
blms/aw For more information and to contact AFX: www.afxnews.com and www.af=
xpress.com



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

USA: RESEARCH ALERT-Merrill lowers Enron rating.

11/01/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 1 (Reuters) - Merrill Lynch on Thursday said it lowered both =
its mid-term and long-term ratings for Enron Corp. , the No. 1 buyer and se=
ller of natural gas, to "neutral," from "accumulate" and "buy," respectivel=
y, due to uncertainty about the U.S. Securities and Exchange Commission's i=
nvestigation into the company's financial dealings.=20
Analyst Donato Eassey said in a research note that while he "has not altere=
d his view of Enron's fundamentals or its ability to weather the long term =
storm," he believes the noise surrounding the SEC's investigation will over=
power any earnings analysis.
"Ultimate outcome and underlying fundamentals aside, we believe significant=
 pressure and uncertainty will remain on Enron until the investigation conc=
ludes," Eassey said.=20
The Houston-based company, whose stock has been sent into a tailspin by the=
 probe, said on Wednesday the informal inquiry by the SEC had become a full=
-scale investigation of the company's finances.=20
The stock slumped $1.34, or nearly 10 percent, to $12.56 in Thursday mornin=
g New York Stock Exchange trade. In the past week and a half, the stock has=
 dropped to nine-year lows while losing $17 billion in market value.



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

USA: UPDATE 1-Enron says gets $1 billion in secured credit.

11/01/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 1 (Reuters) - Enron Corp., facing a probe by U.S. regulators =
into its financial dealings, on Thursday said it obtained $1 billion in sec=
ured credit lines to bolster investor confidence.=20
Enron said J.P. Morgan, the investment banking arm of J.P. Morgan Chase & C=
o., and Citigroup Inc. unit Salomon Smith Barney Inc. will provide the cred=
it, which will be secured by Enron's Northern Natural Gas Company and Trans=
western Pipeline Co. assets.
The proceeds will be used to supplement short-term liquidity and to refinan=
ce maturing obligations, Enron said. The commitments are subject to customa=
ry terms and conditions, including final due diligence, the company said.=
=20
The announcement came shortly before opening trade on the New York Stock Ex=
change, where Enron shares plunged $1.60, or 11.5 percent, to $12.30.=20
Earlier Thursday, brokerage house Merrill Lynch & Co. cut its rating on Enr=
on to "Neutral/Neutral" from Accumulate/Buy." The Securities and Exchange C=
ommission said late Wednesday it was making an informal inquiry into Enron =
transactions a full-scale investigation.=20
"This is yet another step in our efforts to enhance market and investor con=
fidence," said Jeffrey McMahon, Enron's new chief financial officer. "We ar=
e moving aggressively to strengthen our balance sheet and maintain our inve=
stment grade credit rating."=20
Kenneth Lay, Enron's chairman and chief executive, said with more than $1 b=
illion in cash on hand, the additional credit capacity will "further solidi=
fy Enron's standing as the leading market maker in wholesale energy markets=
."



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Credit Suisse Says Citigroup Is Its Top Pick

11/01/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Credit Suisse First Boston Corp.'s (Z.CSF) research =
team covering the brokerage industry said its investment strategy remains "=
defensive" given the uncertainty that continues to pervade the marketplace.=
=20
CSFB analyst Joan Solotar recommends investing in the "highest quality/stro=
ngest franchise" companies only with a 12 to 18 month time frame in mind be=
cause the stocks could lose some value in the near-term.
Citigroup Inc. (C) is their top pick, Solotar said in a research note, with=
 a price target in the mid-50s. The financial services giant was recently t=
rading up 4 cents, or 0.1%, at $45.40. For investors seeking a purer-play c=
ompany in the brokerage arena, she suggests Goldman Sachs (GS), given its "=
longer-term franchise value as well as nearer-term relative market share mo=
mentum."=20
"Brokerage stocks have performed surprisingly well in the face of adversity=
," Solotar said, noting their 9% rise on average in October. "We believe th=
is mostly relates to the assumption by investors that enough fiscal stimulu=
s had been injected to cause an economic rebound."=20
As a result, Solotar believes the stocks already reflect some amount of ear=
nings recovery.=20
"Our concern rests on the belief that returns next year are not likely to e=
xceed the low-to-mid teens for most firms, and with book valuation hovering=
 above two times, there is much room for disappointment," she said, "Add to=
 that the uncertainty surrounding terrorist attacks, and the need to add ex=
penses next year in the form of new back-up sites and hot-sites."=20
She doesn't expect to see much demand for investment banking services witho=
ut an economic recovery; equity underwriting backlogs now stand at the lowe=
r end of the recent $18 to $20 billion range. Underwriting levels should re=
main at current levels, as should merger and acquisition activity, she said=
 in the note.=20
Trading volumes are down from their initial surge after September 11, but a=
re holding steady.=20
"If we believe we may have defined bottom, why are we not more bullish?," S=
olotar said, "While we may project September was bottom, we are not project=
ing much in the way of recovery any time soon."=20
She said fixed-income business, while relatively stronger than other areas,=
 is not providing as much as it was in the first half of the year. Meanwhil=
e, newer problems, such as exposure to Enron Corp. (ENE), create uncertaint=
y. Solotar said she doesn't know of any direct exposures to Enron. Enron's =
shares have tumbled since Oct. 16 when it posted third-quarter charges of $=
1.01 billion. The charges are related to certain investments which were run=
 by former financial chief Andrew Fastow. On Thursday, the Securities and E=
xchange Commission's inquiry into partnerships head by Fastow moved to an o=
fficial investigation.=20
-By Tara Siegel Bernard, Dow Jones Newswires; 201-938-5288; tara.siegel@dow=
jones.com



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against =
Enron Corporation

11/01/2001
Business Wire
(Copyright (c) 2001, Business Wire)
WASHINGTON--(BUSINESS WIRE)--Nov. 1, 2001--The following notice is issued b=
y the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C., on behalf of =
its client, who filed a lawsuit on October 31, 2001 in the United States Di=
strict Court for the Southern District of Texas (Houston Division), on beha=
lf of purchasers of the common stock of Enron Corporation ("Enron" or the "=
Company") (NYSE:ENE) during the period of January 18, 2000 through and incl=
uding October 17, 2001 (the "Class Period").=20
The complaint alleges that the defendants violated section 10(b) of the Sec=
urities Exchange Act of 1934 ("The Exchange Act"), and Rule 10b-5 promulgat=
ed thereunder, and that defendants' wrongful conduct artificially inflated =
the price of Enron common stock during the Class Period. The complaint char=
ges that the defendants misrepresented and concealed material facts concern=
ing the Company's financial transactions with two partnerships established =
by Enron's then Chief Financial Officer, which resulted in substantial loss=
es to Enron and a reduction in shareholders' equity of over $1 billion. The=
 price of Enron's common stock has plummeted over 50% since the disclosure =
of the financial losses resulting from Enron's dealings with these partners=
hips.
Plaintiff's counsel -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. -- has si=
gnificant experience in prosecuting investor class actions and actions invo=
lving financial fraud. The firm has offices in Washington, D.C., Seattle, W=
ashington and New York, New York and is active in major litigation pending =
in federal and state courts throughout the nation.=20
The firm's reputation for excellence has been recognized on repeated occasi=
ons by courts which have appointed the firm to lead positions in complex mu=
lti-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, =
P.L.L.C. has taken a lead role in numerous important cases on behalf of def=
rauded investors, and has been responsible for a number of outstanding reco=
veries which, in the aggregate, total hundreds of millions of dollars or mo=
re.=20
If you purchased shares of Enron stock during the Class Period, you may mov=
e the Court no later than December 21, 2001 to serve as lead plaintiff for =
the Class. In order to serve as lead plaintiff, you must meet certain legal=
 standards.=20
If you have any questions about this notice or the action, or with regard t=
o your rights, please contact either of the following:=20

Andrew N. Friedman, Esq.=20
or=20
Mary Ann Fink=20
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.=20
1100 New York Avenue, NW=20
West Tower, Suite 500=20
Washington, DC 20005=20
Telephone: 888/347-4600 or 202/408-4600=20
E-mail: afriedman@cmht.com or mfink@cmht.com

CONTACT: Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Andrew N. Friedman, 888=
/347-4600 afriedman@cmht.com or Mary Ann Fink, 202/408-4600 mfink@cmht.com=
=20
10:20 EST NOVEMBER 1, 2001=20


Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Enron Obtains $1 Billion in Financing to Bolster Credit Facilities

11/01/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -- Enron Corp. said Thursday it has secured commitments for an addi=
tional $1 billion in financing from units of J.P. Morgan Chase & Co. and Ci=
tigroup Inc. as the embattled energy trader moves to supplement its credit =
facilities.=20
"This is yet another step in our efforts to enhance market and investor con=
fidence," said Enron Chief Financial Officer Jeffrey McMahon. "We are movin=
g aggressively to strengthen our balance sheet and maintain our investment =
grade credit rating."
Enron has seen its stock price plummet in a selloff sparked by a loss of in=
vestor confidence in the company following big third-quarter write-downs an=
d the disclosure of an inquiry by the Securities and Exchange Commission. I=
n morning trading on the New York Stock Exchange, Enron (ENE) shares were d=
own $1.67, or 12%, to $12.23. The stock has declined from a 52-week high of=
 $84.88.=20
Enron's new financing is secured by its Northern Natural Gas Co. and Transw=
estern Pipeline Co. assets.=20
The financing news comes a day after the SEC elevated to a formal investiga=
tion its inquiry into Enron's financial dealings with partnerships headed b=
y its former chief financial officer, Andrew Fastow. A formal investigation=
 involves the SEC's enforcement branch going to the five-member commission =
and obtaining formal subpoena power to pursue its inquiry.=20
Enron last week disclosed that the SEC had contacted the company as part of=
 what it described as an informal inquiry into the Fastow-related partnersh=
ips. At the time, Enron said it welcomed the inquiry and that it would coop=
erate fully with the SEC -- a position the company has restated repeatedly =
since.=20
In turn, Enron named William Power a director and head of a four-member com=
mittee to look into the Fastow-related transactions and other matters. Powe=
r is dean of the University of Texas School of Law.=20
Enron has consistently said its dealings with the Fastow-connected partners=
hips were legal and properly disclosed to investors. According to Enron fil=
ings with the SEC, the company did deals involving billions of dollars of a=
ssets and Enron stock with entities related to the Fastow partnerships. Int=
ernal partnership documents indicate that Mr. Fastow and possibly others ma=
de millions of dollars from the partnerships. Mr. Fastow, who was replaced =
as chief financial officer by Mr. McMahon last week, has consistently decli=
ned to be interviewed.=20
Copyright (c) 2001 Dow Jones & Company, Inc.=20
All Rights Reserved.



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Enron: EnronOnline Trading Volume Above Average Wed

11/01/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
(This article was originally published Wednesday.)=20

NEW YORK -(Dow Jones)- Enron Corp.'s (ENE) electronic trading system, Enron=
Online.com, saw 7,100 transactions Wednesday by early evening, company spok=
esman Eric Thode said.
A handful more deals were expected Wednesday evening because some products =
trade 24 hours a day.=20
As in the past two weeks, the volume of transactions Wednesday exceeded the=
 30-day average volume of about 5,600 daily transactions.=20
"It's been above average for a while," Thode said, due to "people balancing=
 portfolios heading into winter and because of the volatility in the gas an=
d power markets."=20
Some industry sources have speculated that EnronOnline volumes may be highe=
r than normal because counterparties are busy flattening their positions wi=
th Enron because of questions of Enron's creditworthiness. EnronOnline isn'=
t an exchange. It's a vehicle for customers that want to execute trades wit=
h Enron. Enron is the counterparty for all deals done there.=20
"Because we know people's transactions and their portfolio with us, we know=
 that is not the case. It is business as usual," Thode said.=20
Trading volumes are normally lower at the beginning of new months, Thode sa=
id. Wednesday was effectively part of November for over-the-counter energy =
markets, where spot trades are for next-day delivery. The last day of tradi=
ng for November forward power contracts was Tuesday.=20
EnronOnline trading volume at the beginning of September, said Thode, was p=
robably in the low to mid 5,000 range, which was well below Wednesday's num=
ber.=20
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.co=
m



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

USA: UPDATE 1-Before The Bell - Futures up with Microsoft.

11/01/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 1 (Reuters) - U.S. technology stock futures rose in pre-openi=
ng trading on Thursday and Microsoft Corp. gained after sources said govern=
ment officials were weighing a proposal to settle the software giant's land=
mark anti-trust case.=20
The December Standard & Poor's 500 futures contract was up 2.30 points at 1=
,063, and the comparable contract for the technology-steeped Nasdaq 100 ind=
ex was up 14.50 points at 1,384.
Microsoft's shares climbed to $59.90 on the Instinet electronic brokerage s=
ystem from $58.15 at Wednesday's close.=20
Computer heavyweight International Business Machines countered Microsoft's =
gains. Its shares slid after Morgan Stanley initiated coverage of the compa=
ny's stock as "neutral," falling $107.37 on Instinet from Wednesday's close=
 of $108.07.=20
Enron Corp., the nation's largest energy trader, also dropped after it said=
 late Wednesday an informal inquiry by the U.S. Securities and Exchange Com=
mission had become a full-scale investigation of questionable financial dea=
lings.=20
Enron dropped to $12.75 from $13.90 at Wednesday's close.=20
Telecommunications equipment maker ADC Telecommunications Inc. slipped afte=
r it warned that its fourth-quarter results would be worse than expected be=
cause of the continued decline in capital spending by communication service=
 providers. It dropped to $4.50 from Wednesday's close of $4.55.=20
King Pharmaceuticals Inc. rose to $39.30 after from Wednesday's close of $3=
8.99 after Moody's Investors Services raised its rating on some of the comp=
any's debt.=20
Technology stocks like Sun Microsystems , up at $10.30 from $10.15 at Wedne=
sday's close, and Intel Corp. , up at $24.50 from $24.42 at the prior close=
, bolstered the high-tech sector.=20
The Nasdaq-100 Pre-Market Indicator was up 0.89 percent.



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Enron stock price plunges again
By JUAN A. LOZANO
Associated Press Writer

11/01/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
HOUSTON (AP) - Troubled Enron Corp. said Thursday it has secured $1 billion=
 in new financing, using its natural gas and pipeline assets as collateral.=
 But its stock price took another dive after rising a day earlier on takeov=
er speculation.=20
In afternoon trading Thursday on the New York Stock Exchange, Enron shares =
were down 9.3 percent, or $1.29 a share, at $12.61.
After dropping to a nine-year low on Tuesday, shares of the nation's larges=
t natural gas and power marketer rose 25 percent Wednesday amid speculation=
 the Houston-based company was a takeover candidate.=20
But after the stock market closed for the day, Enron announced the Securiti=
es and Exchange Commission had opened a formal investigation into possible =
conflicts of interest.=20
The SEC is apparently looking into dealings Enron had with partnerships led=
 by its former chief financial officer, Andrew Fastow, who was forced out l=
ast month as investors fled because of questions about the arrangements.=20
On Thursday, Enron announced its investment bankers had arranged for $1 bil=
lion in fresh credit lines that it planned to use partly to refinance matur=
ing debts.=20
"This is yet another step in our efforts to enhance market and investor con=
fidence," said Jeffrey McMahon, Enron's new chief financial officer. "We ar=
e moving aggressively to strengthen our balance sheet and maintain our inve=
stment grade credit rating."=20
Late Wednesday, Enron said it created a special committee headed by Univers=
ity of Texas law school dean William Powers to respond to the SEC investiga=
tion. Powers also was elected to Enron's board of directors.=20
"I have asked the board to take this action to address fully and forthright=
ly investors' questions and concerns," said Enron chairman and chief execut=
ive Kenneth L. Lay. "We will also make every appropriate public disclosure =
during the course of the SEC's investigation."=20
However, Duane Grubert, an analyst with Sanford C. Bernstein and Co. in New=
 York, said Enron still has much to do to restore investor confidence.=20
"With (stock) values this low, you've got two camps of investors: guys that=
 hate Enron and guys that want to be cautiously attracted to Enron," Gruber=
t said. "It's led to the trading range being irrationally low and shares be=
ing oversold. It's not something the company wants."=20
Enron's stock has skidded since the company reported a $638 million third q=
uarter loss just over two weeks ago, dragged down by a one-time charge of $=
1.01 billion attributed to various losses. Some of these losses have been t=
ied to partnerships managed by Fastow, who was ousted last week.=20
Earlier this week, Moody's Investors Service downgraded the company's long-=
term debt and warned of possible further downgrades.=20
Since reporting its disappointing third quarter, Enron had been negotiating=
 to establish new credit lines.=20
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said We=
dnesday's stock price surge, after two weeks of selling, was likely a react=
ion to a The Wall Street Journal report on rumors of a possible takeover of=
 Enron.=20
Others might have been buying figuring the stock had hit bottom, she said.=
=20
On Tuesday, Enron's stock closed at $11.16, its lowest level since 1992.=20
Potential buyers include General Electric's GE Capital unit, Warren Buffett=
's Berkshire Hathaway and Royal Dutch Shell, the Journal said.=20
---=20
On the Net:=20
http://www.enron.com

AP Photo XNYR310 of Oct. 29=20


Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Enron Misled Investors about Overvalued Assets and Off-Balance Sheet Deals =
-- ENE

11/01/2001
PrimeZone Media Network
Copyright (c) 2001 PrimeZone Media Network, Inc. All Rights Reserved.
PHILADELPHIA, Nov. 1, 2001 (PRIMEZONE) -- The law firm of Berger & Montague=
, P.C. (http://www.bergermontague.com) filed a class action suit on behalf =
of an investor against Enron Corp. ("Enron" or the "Company") (NYSE:ENE) an=
d its principal officers and directors in the United States District Court =
for the Southern District of Texas on behalf of all persons or entities who=
 purchased Enron securities during the period from March 30, 2000 through a=
nd including October 18, 2001, inclusive (the "Class Period").=20
The complaint alleges that Enron and its principal officers and directors v=
iolated Section 10(b) and 20 (a) of the Securities Exchange Act of l934 and=
 SEC Rule 10b-5. The complaint alleges that defendants misled investors (1)=
 by reporting assets that were overvalued by more than $1 billion, which ca=
used writedowns in that amount and are expected to lead to further writeoff=
s of hundreds of millions of dollars, (2) by concealing facts regarding rel=
ationships with a related entity that led to a more than $1 billion reducti=
on of shareholders' equity and a $35 million charge, and (3) by failing to =
disclose the fact that agreements with other related entities satisfaction =
of which include obligations that may require the Company to issue large am=
ounts of its shares. This misconduct caused the market prices of Enron stoc=
k to be artificially inflated during the Class Period. When facts about the=
se matters were disclosed at the end of the Class Period, the market price =
of the Company's stock fell from a high of $90 per share during the Class P=
eriod to a low of $15 per share, and securities analysts downgraded their r=
atings of the Company's stock despite the precipitous fall in its market pr=
ice. Also, Enron's senior debt was placed on notice by Moody's for possible=
 downgrade.
Also, an SEC inquiry into the Company's transactions with related entities =
has been announced, and the Company revealed that its Chief Financial Offic=
er, who is one of the Defendants, has taken a "leave of absence" from the C=
ompany, and has been replaced. If you purchased Enron securities during the=
 period from March 30, 2000 through October 18, 2001, inclusive, you may, n=
o later than December 21, 2001 move to be appointed as a Lead Plaintiff. A =
Lead Plaintiff is a representative party that acts on behalf of other class=
 members in directing the litigation. The Private Securities Litigation Ref=
orm Act of 1995 directs Courts to assume that the class member(s) with the =
"largest financial interest" in the outcome of the case will best serve the=
 class in this capacity. Courts have discretion in determining which class =
members(s) have the "largest financial interest," and have appointed Lead P=
laintiffs with substantial losses in both absolute terms and as a percentag=
e of their net worth. If you have sustained substantial losses in Enron sec=
urities during the Class Period, please contact Berger & Montague, P.C. at =
investorprotect@bm.net for a more thorough explanation of the Lead Plaintif=
f selection process.=20
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom =
represent plaintiffs in complex litigation. The Berger firm has extensive e=
xperience representing plaintiffs in class action securities litigation and=
 has played lead roles in major cases over the past 25 years which have res=
ulted in recoveries of several billion dollars to investors. The firm is cu=
rrently representing investors as lead counsel in actions against Rite Aid,=
 Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office=
 Solutions, Inc. The standing of Berger & Montague, P.C. in successfully co=
nducting major securities and antitrust litigation has been recognized by n=
umerous courts. For example:=20
"Class counsel did a remarkable job in representing the class interests." I=
n Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-428=
6(E.D.Pa.) (partial settlement for $111 million approved May, 2000).=20
"[Y]ou have acted the way lawyers at their best ought to act. And I have ha=
d a lot of cases...in 15 years now as a judge and I cannot recall a signifi=
cant case where I felt people were better represented than they are here ..=
. I would say this has been the best representation that I have seen." In R=
e: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709=
 (N.D. Ill.) (settled in 1999 for $220 million)=20
If you purchased Enron securities during the Class Period, or have any ques=
tions concerning this notice or your rights with respect to this matter, pl=
ease contact:=20
Sherrie R. Savett, Esquire
Carole A. Broderick, Esquire
Arthur Stock, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net=20

More information on this and other class actions can be found on the Class =
Action Newsline at www.primezone.com/ca.

Berger & Montague, P.C. Sherrie R. Savett, Esquire Carole A. Broderick, Esq=
uire Kimberly A. Walker, Investor Relations Manager (888) 891-2289 or (215)=
 875-3000 Fax: (215) 875-5715 InvestorProtect@bm.net=20


Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

MONEY
Inside Money
TAKEOVER TALK INVIGORATES ENRON STOCK
JUAN. A. LOZANO, ASSOCIATED PRESS

11/01/2001
Orlando Sentinel
METRO
C5
(Copyright 2001 by The Orlando Sentinel)
HOUSTON -- After plummeting to a nine-year low following recent economic lo=
sses and an investigation by federal securities regulators, shares of Enron=
 Corp. jumped nearly 25 percent Wednesday amid speculation the company was =
ripe for takeover.=20
Shares of Enron, the nation's largest natural gas and power marketer, rose =
$2.74 to close at $13.90 Wednesday on the New York Stock Exchange. It is st=
ill down 69 percent since the company reported third-quarter earnings two w=
eeks ago.
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said We=
dnesday's surge was likely a reaction to a Wall Street Journal report that =
Enron's beaten-down stock price has stirred rumors of a possible takeover. =
Others may be buying figuring the stock has hit bottom, she said.=20
On Tuesday, Enron's stock closed at $11.16, its lowest level since 1992.=20
Potential buyers include General Electric's GE Capital unit, Warren Buffett=
's Berkshire Hathaway and Royal Dutch Shell, the Journal said.=20
Duane Grubert, an analyst with Sanford C. Bernstein and Co. in New York, sa=
id Shell, which has a small presence in energy marketing, would be a good f=
it.=20
"Shell tried to be in the merchant energy arena and didn't really succeed,"=
 he said. "To buy into an established franchise must be attractive to Shell=
."=20
Enron officials did not immediately return telephone calls Wednesday.



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Enron Gets New Bank Loans But Its Bonds Fall Further
By Joe Niedzielski
Of DOW JONES NEWSWIRES

11/01/2001
Capital Markets Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Word that Enron Corp. (ENE) had secured $1 billion i=
n fresh funds Thursday did little to soothe prices on the company's outstan=
ding debt securities.=20
Similar to other companies like Lucent Technologies Inc. (LU) that have fac=
ed short-term liquidity issues this year, Enron was forced to put up its as=
sets in order to secure the financing. And the new bank facilities leapfrog=
ged in front of other creditors like senior unsecured lenders.
The Houston-based energy and trading company said in a statement Thursday t=
hat the new financing is supported by Enron's Northern Natural Gas Company =
and Transwestern Pipeline Company assets. JPMorgan and Salomon Smith Barney=
 were co-arrangers on the credit lines.=20
Enron plans to use the proceeds to supplement short-term liquidity and to r=
efinance maturing obligations. The new $1 billion of secured credit lines w=
ith the more than $1 billion in cash currently on the balance sheet "will f=
urther solidify Enron's standing as the leading market maker in wholesale e=
nergy markets," Kenneth Lay, Enron's chairman and chief executive officer, =
said in the statement.=20
But the need to pledge assets to get the credit lines shows caution on the =
part of lenders that's understandable given Enron's situation, said Susan A=
bbott, a managing director in corporate finance at Moody's Investors Servic=
e.=20
"It signals the fact that the people with the money are not confident enoug=
h to trust the general corporate creditworthiness of the entity they're loa=
ning money to," Abbott said. Still, by securing the $1 billion, Enron avoid=
ed a negative signal that it couldn't secure financing, she said.=20
Moody's lowered the company's senior unsecured long-term debt rating Monday=
 to Baa2 from Baa1. The debt is rated triple-B-plus by Standard & Poor's Co=
rp., with a negative outlook. Fitch also maintains a triple-B-plus rating a=
nd it placed the debt on Rating Watch Negative late last week.=20
Questions Remain=20

Traders and bondholders aren't convinced that the new money will be enough.=
 Enron has yet to post information on its balance sheet with the Securities=
 and Exchange Commission. And late Wednesday it disclosed that the SEC elev=
ated to a formal investigation its inquiry into Enron's financial dealings =
with partnerships headed by its former CEO, Andrew Fastow.=20
Some market participants remain concerned over the lack of disclosure over =
Enron's off-balance sheet financing vehicles.=20
One bank loan officer in New York also cited concerns over the amount of tr=
ade receivable and physical settlement obligations Enron may have upcoming =
in its energy trading business.=20
Abbott at Moody's said the main question is whether Enron's trading counter=
parties will tighten credit requirements. Other liquidity needs for Enron, =
she said, are a matter of whether the markets are demanding additional coll=
ateral.=20
Earlier Thursday, Enron's bonds were down about three to four points after =
trading up Wednesday by as much as five points. Enron bonds that come due i=
n 2005 were quoted just shy of 78 cents on the dollar, while Enron paper th=
at matures in 2009 was bid at around 76 cents. Shorter-term paper that come=
s due in 2003 was bid slightly higher at 77 cents on the dollar.=20
Enron bank debt has also fallen this week. A five-year revolving loan facil=
ity is quoted in the high 70s, while a 364-day facility, part of $3 billion=
 in loan facilities that Enron drew down on last week, was quoted at around=
 90 cents on the dollar, according to Loan Pricing Corp. in New York.=20
In addition, the credit default swap market, where participants can buy pro=
tection against defaults or other credit events like loan restructurings, i=
s displaying signs of distress in the Enron name. Those willing to sell Enr=
on protection this week have demanded some of the premium, or "points" up f=
ront, to go into the trade.=20
Usually, trades in credit default swaps are initially unfunded, with premiu=
ms paid on a quarterly or semiannual basis, similar to a company's interest=
 payments on its bonds.=20
The cost is also higher to write protection over the next year than it is f=
or protection that covers the next three years. Traders say this indicates =
there are concerns over Enron's obligations coming due.=20
Recent quotes for credit protection on Enron call for buyers to pay 12% to =
15% of the notional amount of the contract up front, with the annual premiu=
m for one-year protection at around 15%. Enron's credit curve then slopes d=
ownward with three-year protection offered at around 11%.=20
Enron's stock was down $1.33 at $12.57 in early afternoon trade.=20

-By Joe Niedzielski, Dow Jones Newswires, 201-938-2039; joe.niedzielski@dow=
jones.com=20
(Andrew Dowell contributed to this story.)



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Enron Gets $1 Bln Loan to Boost Cash, Credit Rating (Update3)
2001-11-01 11:40 (New York)

Enron Gets $1 Bln Loan to Boost Cash, Credit Rating (Update3)

     (Adds possibility of additional loans in 12th paragraph.)

     Houston, Nov. 1 (Bloomberg) -- Enron Corp., the largest
energy trader, received a $1 billion loan from J.P. Morgan Chase &
Co. and Salomon Smith Barney Inc. after agreeing to use the
company's natural-gas pipelines as collateral.

     Proceeds will go for debt payments and to supplement Enron's
short-term cash reserves. Assets of Enron's Northern Natural Gas
Co. and Transwestern Pipeline Co. will secure the loan.

     The financing comes a day after Enron said the U.S.
Securities and Exchange Commission is formally investigating
partnerships run by its former chief financial officer. Using the
pipelines as collateral signals Enron's desperation to reassure
shareholders and trading partners that it is creditworthy,
investors said.

     ``Its not reassuring, it's worrisome,'' said Donald Coxe,
manager of the Harris Insight Equity Fund, which owns about 78,000
Enron shares. ``If they had to secure the loan, obviously the
lenders don't think they can rely on Enron's financial
statements.''

     Shares of Enron fell $1.35, or 9.7 percent, to $12.55 in late
morning trading. Earlier, they dropped to $11.47. Before today,
the shares had fallen 83 percent this year.

     Enron's shares fell 52 percent last month amid an SEC inquiry
into partnerships headed by Andrew Fastow, Enron's former chief
financial officer, that cost $35 million and $1.2 billion in lost
shareholder equity. A formal SEC investigation began yesterday.

     ``It seems until we know more about the SEC investigation,
it's going to be a difficult time for the stock,'' said Tara
Gately, an energy analyst at Loomis Sayles & Co., which sold most
of its Enron shares early last year.

                      Pipeline as Collateral

     Enron, based in Houston, got its start as a gas-pipeline
company. In the past decade, Chairman Kenneth Lay has transformed
the company into the biggest trader of electricity, natural gas,
forest products and other commodities. Enron accounts for about a
quarter of U.S. power and natural gas trades.

     Northern Natural Gas, Enron's largest pipeline, has
approximately 16,500 miles of pipeline from the Permian Basin in
Texas to the Great Lakes. Transwestern Pipeline spans about 2,500
miles.

     Since the SEC began its inquiry, concerns about shaky
finances have prevented Enron from selling commercial paper, or
short-term IOUs. The financing is to ``enhance market and investor
confidence,'' Enron Chief Financial Officer Jeffrey McMahon said
in a statement.

     ``We are moving aggressively to strengthen our balance sheet
and maintain our investment grade credit rating'' McMahon said.

     Enron can borrow another $200 million by bringing other banks
into the loan, spokeswoman Karen Denne said. ``We don't have any
plans to do so at this point,'' she said.

                           Credit Rating

     On Monday, Moody's Investors Service lowered Enron's long-
term credit rating to ``Baa2'' from ``Baa1,'' two notches above
junk status. It also placed the company's ``P-2'' rating for
commercial paper on review for possible downgrade.

     Falling below investment grade would trigger early repayment
terms for affiliated companies Enron formed to buy its assets such
as power plants. The affiliates plan to repay borrowed money by
selling the assets. Enron might have to repay any difference
between what the assets sell for and the underlying debt.

     J.P. Morgan is advising Enron on the sale of part of its
Azurix North America water business to American Water Works Inc.
for $148.8 million in cash and assumed debt. Salomon Smith Barney
is the investment banking arm of Citigroup Inc.


BG India: To Extend Enron Oil, Gas Field Operator Talks

11/01/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
SINGAPORE -(Dow Jones)- U.K. oil and gas company BG Group PLC (BRG) said Th=
ursday it will extend the negotiation period on the operatorship of the Ind=
ian upstream assets of Enron Corp. (ENE) acquired by BG for US$388 million =
in early October.=20

0909GMT
A disagreement between BG and Enron Corp.'s former joint venture partners -=
 state-owned Oil & Natural Gas Corp. (P.ONG) and Reliance Industries Ltd. (=
P.REL) - soon after BG acquired Enron Corp.'s upstream India assets threate=
ned to scuttle the deal.=20
BG's goal of acquiring Enron's operatorship of the offshore Tapti gas field=
 and the Panna/Mukti oil and gas field was being challenged by the two othe=
r partners which jointly hold a 70% stake in the assets.=20
BG made it clear it would walk away from the deal if it didn't get outright=
 operatorship by Oct. 31.=20
But in a statement issued Thursday, BG India Vice President Nigel Shaw indi=
cated talks between the three parties were positive and ONGC and that Relia=
nce Industries could reach an agreement.=20
"We are making good progress and will continue discussions with ONGC and Re=
liance to reach agreement for BG India to operate these assets. We believe =
that this proposal is advantageous and is in the interests of the partnersh=
ip," Shaw said.=20
BG India said it expects to continue discussions over the "coming weeks" an=
d "will make an announcement in due course." The statement didn't specify t=
he extended length of the negotiations.=20
The Indian government wants ONGC and Reliance to have first option on the o=
peratorship, which was being pursued by both companies, according to Indian=
 newspaper reports in October.=20
BG has portrayed its purchase of Enron Oil and Gas Ltd., or EOGIL, as signi=
ficant as it raises its upstream profile, by boosting the group's global hy=
drocarbon production by up to 7%, and diversifying its distribution and pip=
eline interests in the fast-growing Indian energy market.=20

Susanta Mazumdar, a Bombay-based energy analyst with UBS Warburg (U.UBS) sa=
id BG India's bid for operator status would continue to face stiff resistan=
ce from ONGC and Reliance.=20
"Both ONGC and Reliance may not give up that easily. There is a strong corp=
orate incentive to get operator status. BG India may have to give some conc=
essions in other fields in return for operator status," Mazumdar said.=20
At the time of writing, ONGC and Reliance Industries declined to comment on=
 BG India's move to extend the operatorship talks.=20
About 0932 GMT, BG Group shares were up 6.25 pence at 266.50 pence on the L=
ondon Stock Exchange.=20
-By Sri Jegarajah, Dow Jones Newswires; 65-415-4066; sri.jegarajah@dowjones=
.com



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

INDIAN FINANCIAL INSTITUTIONS FAIL TO RESOLVE DABHOL POWER ISSUE

11/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.
NEW DELHI, Nov 1 Asia Pulse - Financial Institutions led by the Industrial =
Development Bank of India (IDBI) have failed to come up with a solution to =
the long payment dispute with United States energy company Enron that has f=
orced the closing of the US$2.9 billion Dabhol Power Project.=20
Top officials of IDBI and ICICI met officials in the Finance and Power mini=
stries here today but failed to come up with an "optimum" solution.
"We discussed Enron. The discussions are continuing and we are examining va=
rious options," IDBI Chairman P P Vora told reporters after meeting Power S=
ecretary A K Basu.=20
He said the FIs, which have a total exposure of over Rs 62 billion in the p=
roject, wanted to come up with a optimum solution but declined to give a ti=
me frame for it.=20
Earlier in the day, Vora met Finance Minister Yashwant Sinha to apprise him=
 about the situation.=20
FIs had decided to come up with a solution by Oct 31 for the second phase o=
f the 2,184 MW Dabhol Power Company (DPC).=20
A settlement of the Enron imbroglio, being played out since early this year=
, assumes importance in view of Prime Minister Atal Bihari Vajpayee's forth=
coming visit to Washington where he is likely to have wide ranging discussi=
ons with US President George Bush.=20
Enron was the biggest donor to Bush's presidential electoral campaign.=20
So far, Tata Power and BSES Ltd. were in the fray for buying Enron's stake =
in DPC.=20
Although the companies showed reluctance to buy Enron's stake at the price =
spelled out by the US power giant, Vora said the two companies are still in=
 the fray.=20
(PTI) 01-11 1900



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

India: SCI to inject more funds into Greenfield Shipping

11/01/2001
Business Line (The Hindu)
Fin. Times Info Ltd-Asia Africa Intel Wire. Business Line (The Hindu) Copyr=
ight (C) 2001 Kasturi & Sons Ltd. All Rights Res'd
NEW DELHI, Oct. 31 AFTER several rounds of discussions and consultations wi=
thin its board and with the Ministry of Shipping, the Shipping Corporation =
of India (SCI) has finally decided to pump in $ 13 million as additional in=
vestment in Greenfield Shipping Company to part-fund the gap in project cos=
t of $ 55 million for building an LNG tanker for transporting gas to Dabhol=
 Power Company.=20
"The Shipping Ministry has given its in-principle approval to SCI for inves=
ting an extra $ 13 million in Greenfield which will be in the form of a loa=
n to the company and not as extra equity. The additional investment by SCI =
would not require clearance from the Union Cabinet," Government sources tol=
d Business Line.
Though the additional investment of $ 55 million is to be shared equally by=
 the three promoters of Greenfield in proportion to their equity holdings, =
this proposition has gone awry due to the fact that one of the promoters, E=
nron-affiliate Atlantic Commercial Inc with a 20 per cent stake, has clearl=
y said no to putting its share of extra funds.=20
In fact, Atlantic Commercial Inc.is understood to have expressed a desire t=
o exit from Greenfield by selling its equity worth $ 11 million and the swa=
p cost of $ 19 million.=20
Consequently, the extra investment of Atlantic Commercial Inc of $ 11 milli=
on is being shared by the other two partners - SCI and Japan's Mitsui O.S.K=
. Lines - apart from their own share of the additional cost in proportion t=
o their equity holdings of 20 per cent and 60 per cent respectively.=20
So, SCI will put in an additional $ 13 million comprising its share of $ 11=
 million and $ 2 million of Atlantic Commercial's share. Whereas, MOL will =
pump-in an additional $ 42 million including its share of $ 33 million and =
$ 9 million of Atlantic's share.=20
The additional investment by the promoters of Greenfield Shipping Company h=
as become necessary after the bankers to the LNG shipping deal led by ANZ I=
nvestment Bank had suspended disbursement of the last tranche of the projec=
t loan of $ 55 million, citing an event of default.=20
The additional investment made by SCI and MOL will take the form of a loan =
to Greenfield which would enable the Company to take possession of the LNG =
tanker on the scheduled delivery date of November 15.=20
Greenfield was formed for owning an operating a 137,000 cubic metre capacit=
y tanker for transporting LNG to Enron-promoted Dabhol power plant. The tan=
ker is ready for delivery at the yard of Mitsubishi, Japan.=20
The promoters are negotiating with Oman LNG to deploy the LNG tanker 'LNG L=
axmi' till the LNG terminal of Dabhol goes on stream.=20
P. Manoj



Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

New & NoteWorthy
Mariner Energy sells pipelines

11/01/2001
The Daily Deal
Copyright (c) 2001 The Deal LLC
Enron Corp. - Enron North America - Pioneer Natural Resources Co. - Nippon =
Mitsubishi Group - Nippon Oil Exploration USA Ltd. - Mariner Energy Inc.=20
Houston oil and gas explorer Mariner Energy Inc. said Wednesday it would se=
ll its interests in the Aconcagua field and the Canyon Express pipeline sys=
tem in the Gulf of Mexico to Nippon Oil Exploration USA Ltd. for $51 millio=
n. The field is one of three deepwater natural gas fields being developed t=
o connect with the pipeline system and is located 150 miles southeast of Ne=
w Orleans. Closing is set for today. Nippon Oil is a unit of Japan's Nippon=
 Mitsubishi Group and Pioneer Natural Resources Co. of Irving, Texas. Marin=
er is owned by an affiliate of Enron North America, a unit of Houston energ=
y trading and marketing giant Enron Corp., which provided financing for a 1=
996 management led buyout. -Claire Poole www.TheDeal.com




Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09

Enron and the curse of Drexel=20
Commentary: Energy trader's friends dry up
By David Callaway <<mailto:dcallaway@marketwatch.com>>, CBS.MarketWatch.com
Last Update: 1:15 AM ET Nov. 1, 2001
SAN FRANCISCO (CBS.MW) -- It was the master of its universe.

Its employees were rich, young and ruthless. It treated its clients and riv=
als alike, with disdain. Its leader counseled business tycoons and politica=
l powerbrokers alike. And when the bottom finally fell out, it didn't have =
a friend in the world to save it.=20

Wall Street loves a success story. But it loves a success story gone wrong =
even more. Such was the case for Drexel Burnham Lambert, the junk bond empi=
re of the 1980s, whose spiritual leader Michael Milken orchestrated one of =
the greatest financial shell games of all time before it collapsed in a hea=
p of federal investigations, losses and the largest bankruptcy in Wall Stre=
et history.=20

For Enron, the energy trading giant that has seen its shares lose more than=
 two-thirds of their value this month amid questions about its financial tr=
ansactions and its stability, the similarities are striking.=20

Like Drexel, Enron set out to change an industry. Like Drexel, it succeeded=
, for a while. Under the guidance of Chairman Ken Lay, Enron evolved from a=
 backwater Texas natural-gas pipeline company to become the nation's larges=
t energy merchant.=20

Its EnronOnline business transformed the way energy trading was done and fu=
nneled hundreds of billions of dollars in transactions through the company =
in last two years. The aggressive trading philosophy geared to squeezing a =
profit at all costs made millionaires of many employees, while those who we=
re not deemed worthy simply vanished from the trading rooms, no questions a=
sked. Enron was and is the dark star of the energy industry.=20

For his part, Lay became an international corporate celebrity, advising Pre=
sident Bush on his campaign and taking a lead role with Vice President Dick=
 Cheney on the administration's controversial energy plan earlier this year=
.=20

But Enron's attempt to extend its dominance into the telecom industry and i=
ts secretive financial structure finally got the best of it. The unexplaine=
d resignation of its chief executive in August, the ouster of its chief fin=
ancial officer last week and the company's inability to prove its financial=
 health have prompted investors to bail out of Enron stock like jackrabbits=
 escaping a brushfire.=20

Now Lay & Co. are busy trying to raise cash from a skeptical Wall Street th=
at is starting to admit it never understood the business in the first place=
 (sound familiar?). Takeover speculation gave Enron shares a boost Wednesda=
y, helping it end a 10-day losing streak. But it's unlikely anyone is going=
 to step into this mess before a Securities and Exchange Commission investi=
gation into its finances yields a few more answers.=20

For investors, a short-term rally beyond the jump Wednesday is still possib=
le now that all of the big mutual funds have dumped the shares. But at a cl=
osing price of $13.90, Enron shares are more than a Texas mile from their 5=
2-week high of $84.88 last December.=20

For Enron itself, it's time to put its cards on the table with regulators a=
nd Wall Street. As the Drexel saga showed, a strategy of defiance to the en=
d only hastens the end.=20