text_combined: enron mentions dynegy enron deal faces major uncertainties huge new liabilities possible regulatory opposition may complicate takeover wall street journal 11 12 01 companies microsoft sees reprieve business line 11 12 01 unravelling dynegy enigma business standard 11 12 01 dynegy throws enron 44 bn lifeline australian financial review 11 12 01 indian court bars enron serving final termination notice asia pulse 11 12 01 us utilities trader narrowly escapes junk debt status financial news 11 12 01 investors priced enron bond default financial news 11 12 01 andersen faces jeopardy enron accounting error experts say bloomberg 11 12 01 dynegy calls sec probe enron financial noise updatel bloomberg 11 12 01 citigroup j p morgan mull 500 mln enron stake dow says bloomberg 11 12 01 enron corp raised hold prudential bloomberg 11 12 01 hedging bets enron dynegy deal james j cramer realmoney com report business wall street journal dynegy enron deal faces major uncertainties huge new liabilities possible regulatory opposition may complicate takeover john emshwiller rebecca smith wall street journal 11 12 2001 globe mail metro b 8 material copyright c bell globemedia publishing inc licensors rights reserved dynegy inc proposed 8 85 billion u takeover enron corp faces major uncertainties ranging possible opposition regulators potentially huge new liabilities writeoffs enron problem regulators could come antitrust worries folding houston based enron biggest u trader natural gas electricity dynegy another major energy trader also based houston enron currently handles quarter natural gas electricity traded united states combined company would called dynegy inc would 22 000 megawatts generating capacity 40 000 kilometres natural gas pipelines making one largest companies united states categories enron dynegy officials said expect merger garner necessary government approvals review regulators expected take months unpleasant financial surprises enron already produced devastating stream past month ranging huge writeoffs assets reductions shareholder equity major downward restatements past earnings reports much turmoil caused enron dealings private partnerships run officers indeed recent enron disclosures indicate much half company pretax earnings recent years came deals officer related partnerships raising questions quality enron earnings potential hundreds millions dollars additional writeoffs restatements enron partnership dealings sparked dozen shareholder lawsuits formal investigation u securities exchange commission measure continuing concerns enron financial condition moody investors service standard poor downgraded enron debt friday time one level non investment grade junk status also kept company review possible additional downgrades p put dynegy status downgrade junk status could force enron come hundreds millions dollars cash stock buttress complicated financial transactions interview friday dynegy chairman chuck watson said company made good assessment enron condition worst case come feel comfortable value exceeds liabilities mr watson said dynegy given opportunity back proposed merger certain conditions declined specify person familiar deal said dynegy right walk away enron additional legal financial liabilities exceed 3 5 billion dynegy spokesman confirmed figure price paid 0 2685 dynegy share enron share fire sale deal recent historical standard transaction valued enron shares 10 41 based dynegy price 38 76 friday 2 26 new york stock exchange trading enron shares rose 22 cents 8 63 big board trading quarter price month ago less tenth time high nearly 90 share reached last year deal envisions quickly pumping 1 5 billion cash enron bolster liquidity comfort enron trading partners increasingly nervous continuing business funds come chevrontexaco corp dynegy biggest shareholder 26 per cent stake dynegy use money purchase preferred stock rights enron pipeline subsidiary copyright 2000 dow jones company inc rights reserved companies must also renegotiate contracts guaranteeing performance warranties fallen abeyance closure plant c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones company inc rights reserved watson puts trust quiet approach sheila mcnulty houston 11 12 2001 financial times c 2001 financial times limited rights reserved charles watson set 16 years ago five guys smile build would become dynegy year kenneth lay laid foundations enron merging assets two established companies inter state intra state natural gas pipeline company 37 000 miles pipe enron widened lead years last year reported 101 bn revenue dynegy 29 bn number one seller natural gas power north america operated biggest web based transaction system world friday dynegy chief executive brought company enron shadow agreeing buy embattled rival deal worth 9 bn stock overnight dynegy became biggest energy trader us enron emphasised individuality dynegy stressed teamwork enron encouraged entrepreneurship dynegy stressed customer satisfaction enron urged aggression pervade everything trading floors financial accountings dynegy made friendliness conservatism culture enron name emblazoned across houston professional baseball stadium building office tower downtown houston dynegy renting 28 floors wells fargo complex enron mr watson notes reputation business swagger modus operandi things go well people come mr watson says believes image cockiness made questions enron balance sheet spiral control balance sheet adjustment could justify massive degradation equity matter weeks masses enron thirsting change image mr watson says intends give mr watson remain charge dynegy takes control enron coming months asked mr lay join board mr lay made decision good ride part mr lay said friday night added would say last three weeks lot fun mr watson reached mr lay october 24 crisis confidence enron became increasingly untenable securities exchange commission investigating finances investors dumping stock credit rating agencies downgrading debt mr watson mother heart surgery saint louis called mr lay offer help back mind possibility buying enron valuable pipeline assets provide liquidity support fast diminishing business two days later mr watson went mr lay home begin working towards combination meeting mr lay rest enron management team became clear willing fix problem whatever took mr watson believes deal put together quickly dynegy works enron daily basis know people businesses based houston one people maybe ones could pulled says done mr watson plans move enron new buildings decided whether rename stadium reflect new owner teenager wants would seem go modesty enabled dynegy win end c copyright financial times group http www ft com copyright 2000 dow jones company inc rights reserved ratings prove crucial enron jenny wiggins new york 11 12 2001 financial times c 2001 financial times limited rights reserved credit ratings agencies consider independent providers research information role played moody investors service sale enron dynegy last week shows agencies often dispassionate observers enron case credit ratings crucial survival company needed investment grade credit rating retain confidence energy trading counterparties enron solution arrange acquisition dynegy first received credit agencies blessing two companies close deal friday morning moody responded investor concerns company downgrading company ratings one notch junk however also signalled prepared sanction deal adding substantial near term injection equity capital would viewed stabilising event arrived form 1 5 bn cash injection chevrontexaco ratings agency pressure provide credit outlook enron generated tremendous amount interest including calls market participants wanted share opinion said moody fran laserson moody analyst john diaz said agency analysed enron financials balance sheet issues agency aware means even seek point risks inherent company balance sheet also looking long term interest company willing give troubled entities time deal problems get back feet c copyright financial times group http www ft com copyright 2000 dow jones section c market place dynegy rushed gamble enron carries big risks alex berenson richard oppel jr 11 12 2001 new york times page 1 column 2 c 2001 new york times company call 9 billion shotgun wedding dynegy inc energy marketer trader based houston took biggest gamble corporate history friday agreeing buy enron corporation much larger crosstown rival 9 billion stock one decisive move chuck watson chairman dynegy positioned company become important player volatile potentially lucrative business trading natural gas electricity hastily arranged deal carries big risks dynegy well skeptical investors wall street analysts say one outside enron appears understand company tangled finances fully speed deal made give dynegy time scrutinize great detail enron trading book web partnerships enron entered move debt balance sheet hide losses skeptics wonder dynegy decided take enron huge debt analysts say could total 23 billion loans balance sheet instead simply trying hire away enron best traders already leaving company many risks associated merger know said carol coale analyst prudential securities sure know everything know enron yet addition enron earnings could far lower reported said james chanos short seller vocal critic thursday enron said filing securities exchange commission used partnerships overstate earnings total 600 million last five years mr chanos said information filing indicated restatements possible much uncertainty surrounding enron finances mr chanos analysts question dynegy decision move quickly note dynegy enron often traded analysts wondered whether enron filed bankruptcy trades might wiped leaving dynegy unhedged unprotected sudden movements prices natural gas electricity hand enron forced restate profits dynegy clinched amazing bargain analysts say enron make 1 80 share year dynegy paying six times enron annual earnings fourth average ratio companies standard poor 500 dynegy said friday deal increase per share earnings next year 90 95 cents 3 40 3 50 even without factoring half billion dollars annual savings taxes merger dynegy shares closed friday 38 76 2 26 company forecast accurate trading 11 times 2002 earnings still bargain compared average stock p 500 jeff dietert analyst simmons company houston said dynegy estimates earnings 2002 conservative achievable mr watson said friday dynegy confident enron operations trading business healthy feel solid company plenty capacity withstand whatever happens next months said mr dietert said dynegy needed strike deal enron quickly make sure enron trading operations financial health deteriorate enron preserves value marketing trading company clearly value enron stock said preserving enron investment grade credit rating crucial keeping trading operation afloat help convince moody investors service standard poor major rating agencies enron rating remain investment grade dynegy agreed inject 1 5 billion enron immediately still friday agencies cut enron rating one notch noninvestment grade junk status suggested rating could fall investors creditors watch carefully week see whether energy companies continue trading enron whether merger stems outflow talented enron traders another question hanging deal easy dynegy walk away enron finances turn worse enron already disclosed merger agreement according executives investment bankers shaped gives dynegy opportunity quit deal without penalty major new problems surface exactly terms remains unknown far investors giving dynegy benefit doubt company stock rose 17 percent thursday friday market believes chuck watson dynegy management team disciplined way manage risks mr dietert said copyright 2000 dow jones company inc rights reserved heard street basic principle accounting tripped enron jonathan weil staff reporter wall street journal 11 12 2001 wall street journal cl copyright c 2001 dow jones six defendants denied sec allegations andersen named defendant said believes lawsuit partner unjustified action questions professional judgment gaap misstatements immaterial simply fall beneath numerical threshold according sec accounting bulletin certain circumstances remains seen apply enron case sec says intentional immaterial misstatements unlawful one reason immaterial misstatements combined misstatements render financial statements taken whole materially misleading enron paid andersen 25 million last year audit fees 27 million services one andersen biggest clients far mr tabolt andersen spokesman says sec told andersen subject enron probe enron disavowal previous financial statements also major embarrassment directors sit enron board audit committee serves overseer enron financial reporting internal controls compliance processes among committee members wendy gramm former chairman commodity futures trading commission wife u sen phil gramm r texas ms gramm also member audit committee ibp inc meatpacking company earlier year became engulfed accounting debacle prompted sec investigation nearly derailed tyson foods since completed plan buy company enron last week said audit committee responsible conducting annual reviews transactions enron partnerships run former chief financial officer andrew fastow company said special committee investigating whether controls procedures properly implemented enron spokeswoman ms gramm declined comment copyright 2000 dow jones company inc rights reserved dynegy enron deal faces uncertainties potential antitrust worries new enron liabilities could upset agreement john emshwiller rebecca smith staff reporters wall street journal 11 12 2001 wall street journal 3 copyright c 2001 dow jones company inc dynegy inc proposed 8 85 billion takeover enron corp faces major uncertainties ranging possible opposition regulators potentially huge new liabilities write offs enron problem regulators could come antitrust worries folding enron nation biggest trader natural gas electricity dynegy also major energy trader enron handles quarter natural gas electricity traded u combined company would called dynegy inc would 22 000 megawatts generating capacity 25 000 miles natural gas pipelines making one largest companies nation categories enron dynegy officials said expect merger garner necessary government approvals review regulators expected take months unpleasant financial surprises enron already produced devastating stream past month ranging huge write offs assets reductions shareholder equity major downward restatements past earnings reports much turmoil caused enron dealings private partnerships run officers indeed recent enron disclosures indicate much half company pretax earnings recent years came deals officer related partnerships raising questions quality enron earnings potential hundreds millions dollars additional write offs restatements enron partnership dealings sparked dozen shareholder lawsuits formal investigation securities exchange commission measure continuing concerns enron financial condition moody investors service standard poor downgraded enron debt friday time one level noninvestment grade junk status also kept company review possible additional downgrades p put dynegy status downgrade junk status could force enron come hundreds millions dollars cash stock buttress complicated financial transactions copyright 2000 dow jones company inc rights reserved analysts competitors give dynegy enron merger thumbs 11 12 2001 dow jones news service copyright c 2001 dow jones 323 658 3872 jessica berthold dowjones com copyright 2000 dow jones company inc rights reserved money 2 stories 1 enron ceo sold compaq stk michael rapoport 11 12 2001 dow jones news service copyright c 2001 dow jones 201 938 5976 michael rapoport dowjones com copyright 2000 dow jones company inc rights reserved usa research alert dynegy reiterated strong buy 11 12 2001 reuters english news service c reuters limited 2001 new york nov 12 reuters ubs warburg monday reiterated strong buy rating dynegy inc power trading firm entered deal friday buy bigger rival enron corp 9 billion stock successfully executed transaction would yield widely recognized respected downright credible wholesale retail energy merchant world ubs said research note added pursuant deal dynegy faces daunting task merging complex operations employee bases naive underestimating enormous challenge hand ubs said said note would surprised see dynegy put review downgrade credit rating agencies would typical initial stages transaction dynegy shares closed friday 38 76 new york stock exchange copyright 2000 dow jones company inc rights reserved usa research alert prudential raises enron hold 11 12 2001 reuters english news service c reuters limited 2001 new york nov 12 reuters prudential securities monday raised investment rating enron corp hold sell citing proposed buyout company smaller power trading rival dynegy inc 9 billion stock brokerage said research note believes capital infusion deal help enron fill near term liquidity needs added uncertain whether deal help prevent enron energy trading partners reducing transactions credit exposure next months prudential said also concerned strategic cultural differences dynegy enron believes risk losing talented traders transaction closes high buyout announced friday calls dynegy swap 0 2685 share enron share valuing enron 10 41 share enron also midst investigation securities exchange commission questionable business practices past enron closed 8 63 new york stock exchange friday copyright 2000 dow jones company inc rights reserved uk press enron investigating finances 11 12 2001 dow jones international news copyright c 2001 dow jones dow jones newswires 44 0 20 7842 9320 copyright 2000 dow jones company inc rights reserved enron assets may overvalued 5 bln usd balance sheet report 11 12 2001 afx news c 2001 afp extel news ltd new york afx enron corp assets may carried company balance sheet 5 bln usd current value financial times reported citing person familiar enron thinking overvaluation likely prompt big writedown enron prospective new owner dynegy inc chevrontexaco inc affiliate newspaper said meanwhile wall street journal reported dynegy saying right walk away agreed 8 85 bln usd deal enron additional legal financial liabilities exceed 3 5 bln usd dynegy proposed takeover faces possible opposition regulators antitrust review deal expected take months journal added noted combined company would 22 000 megawatts generating capacity 25 000 miles natural gas pipelines making one largest companies us categories enron dynegy officials said expect merger garner necessary government approvals ft said investors today briefed dynegy decision focus enron core gas pipeline business wholesale energy trading operations investors likely quiz executives closely potential losses enron web financial dealings led crisis confidence wall street forced merger dynegy noted jms information contact afx www afxnews com www afxpress com copyright 2000 dow jones company inc rights reserved enron sale could thwarted antitrust worries liabilities 11 12 2001 dow jones business news copyright c 2001 dow jones company inc dynegy inc proposed 8 85 billion takeover enron corp faces major uncertainties ranging possible opposition regulators potentially huge new liabilities write offs enron monday wall street journal reported problem regulators could come antitrust worries folding enron ene nation biggest trader natural gas electricity dynegy dyn also major energy trader enron handles quarter natural gas electricity traded u combined company would called dynegy inc would 22 000 megawatts generating capacity 25 000 miles natural gas pipelines making one largest companies nation categories enron dynegy officials said expect merger garner necessary government approvals review regulators expected take months unpleasant financial surprises enron already produced devastating stream past month ranging huge write offs assets reductions shareholder equity major downward restatements past earnings reports much turmoil caused enron dealings private partnerships run officers indeed recent enron disclosures indicate much half company pretax earnings recent years came deals officer related partnerships raising questions quality enron earnings potential hundreds millions dollars additional write offs restatements enron partnership dealings sparked dozen shareholder lawsuits formal investigation securities exchange commission measure continuing concerns enron financial condition moody investors service standard poor downgraded enron debt friday time one level noninvestment grade junk status also kept company review possible additional downgrades p put dynegy status downgrade junk status could force enron come hundreds millions dollars cash stock buttress complicated financial transactions copyright c 2001 dow jones company inc rights reserved copyright 2000 dow jones source world reporter tm wessex water could become takeover target thames water troubles continue engulf u parent bath based utility employs around 1 500 people one several uk businesses owned enron last week forced slice 500 million gbp 354 million reported profits past five years enron much smaller rival dynergy set buy troubled giant 8 billion gbp 5 6 billion although plunging value enron become sticking point enron north america biggest buyer seller electricity natural gas bought wessex gbpl 4 billion 1998 time said planned use wessex expertise foundation stone global water company azurix contracts secured azurix constantly found outbid larger groups failure water business added enron troubles weekend speculation suggested thames water poised pounce wessex enron financial position gets weaker thames water german utility group owner rwe keen expand water interests uk considered bidding wessex past august said running slide rule firm bolster uk interests acquired thames neighbouring water company wessex last year gbp 4 3 billion thames move wessex would attract attention industry regulator previous similar takeover bids blocked fact two neighbours wessex supplies area stretching wiltshire somerset dorset thames goes london swindon could weigh favour bid along enron shaky financial position enron last week acknowledged overstated earnings 20 per cent past four years kept large amounts debt balance sheets business partnerships investigation u securities exchange commission sec said enron financial statements 1997 first half 2001 relied upon outside businesses run enron officials period included company earnings reports enron debt ratings also reduced one level junk bond status company long term debt ratings remain review downgrade friday uk energy watchdog ofgem said monitoring financial crisis could impact uk market well owning wessex enron three power plants teesside whose customers include suppliers generators distributors copyright 2000 dow jones microsoft sees reprieve setting private partnerships making deals 11 12 2001 business line hindu fin times info ltd asia africa intel wire business line hindu copyright c 2001 kasturi sons ltd rights res enron facing corruption charges time nothing maharashtra shock waves began company announced early october 618 million rs 2 966 crore loss third quarter also disclosed write offs tune 1 2 billion rs 5 760 crore due questionable transactions two deals made public last couple weeks one mr andrew fastow company chief financial officer ran private partnership called ljm 2 co investment lp named initials wife children enron several financial transactions aim transactions hedge fluctuating values enron investments mr fastow enron employees part partnership made millions fees investment gains personal accounts mr fastow fired revelations second company said made 35 million rs 168 crore purchase entity called chewco investments lp run michael kopper managing director north america unit deal seen attempt enron park debt elsewhere enron began natural gas energy products company made important forays retail energy bandwidth products growth phenomenal 13 billion rs 62 400 crore revenues 1996 company 2000 revenues 100 billion rs 80 000 crore 1999 2000 alone grew 150 per cent energy trader company dominant force markets extended trading skills software infrastructure bandwidth area met limited success however another venture named azurix focussed managing water supply headed rebecca mark dabhol fame failure leading exit company analysts beginning wonder phenomenal results company something creative accounting enron said borrowed large sums money asset purchases without debt showing company balance sheet analysts often write enron use terms like byzantine labyrinth describing financial dealings admitting really understand going enron secretive comes revealing financial arrangements clearly company seems se private partnerships make balance sheet look clean nice return allowed senior employees profit fatten wallets fees paid transactions price paid keep quiet pc manufacturers freedom ship machines non microsoft products company retaliate establish standard royalties licensing terms interestingly three member panel located microsoft headquarters staff access company records monitor compliance settlement period initially five years extendable two microsoft may secure high marks quality products company always leader strategy though technology savvy users personal computers always praised apple hardware operating system microsoft one climbed dominate 90 per cent market share quickly worked allies establish operating system widely used standard comparable astuteness company managed drag anti trust case long enough till sympathetic president occupied white house anti trust head democratic president clinton joel klein seen hawk doggedly pursuing company microsoft waited making significant monetary contributions republican party even campaign trail mr george bush made known fervent devotee anti trust came power newly appointed anti trust chief quickly moved compromise settle proposed settlement leaving everyone happy private corporations affected microsoft practices clearly disappointed terms settlement america online incarnated aol time warner biggest internet service provider 30 million subscribers benefited partnership microsoft new windows xp company msn service messaging system cutting aol sun microsystems another affected party sun java software allowed piece computer code run many different kinds computers new windows xp dropped support java thus sun aol among others feel closed see change microsoft monopolistic behaviour fact also upset six state governments also parties suit time writing refused sign massachusetts one protested ineffectual deal microsoft bravely moves surviving possible threat break like juggernaut crushing come path recent wall street journal report controversy taken toll within employee morale several key people left company even manages close chapter us legal troubles company still faces investigation european commission correction column last fortnight incorrectly mentioned polaroid headquarters building empty sale polaroid building rents space c gopinath author professor international business strategic management suffolk university boston us e mail address cgopinat suffolk edu copyright 2000 dow jones even founded year 1985 set chuck watson largest shareholder company really oil major chevron texaco 27 per cent despite attempt swallow corporation thrice size dynegy piffling either one world leading energy merchants revenues nearly 30 billion year 2000 crossed 33 billion mark first nine months 2001 fortune 100 company positioned 54 th finds place standard poors 500 index boot also similar lines business enron like controversial company trader natural gas electricity coal broadband synergies merger obvious dynegy also power generation distribution leading player north american market 43 generating station aggregate capacity 19 000 mw last year sold 138 million units electricity already sold 213 million units year power delivery routed subsidiary illinois power broadband front company 21 900 mile optic fibre network 16 800 miles united states balance 5 100 miles europe dynegy presence 16 countries total workforce 6 700 dynegy stranger india last year signed memorandum understanding jatiyas wimco setting joint venture company set liquefied petroleum gas lpg import terminal okha gujarat apart two parties planning set lpg bottling plants together cost project estimated rs 1 000 crore deal enron goes become latest player dabhol drama meanwhile international ratings agency moody investors service friday said cut long term short term ratings embattled energy trader enron corporation warned could cut ratings substantial loss investor confidence moody cut enron senior unsecured debt ratings baa 3 lowest investment grade baa 2 also cut company commercial paper rating prime prime 2 moody cut enron long term rating would take junk level downgrade would make tougher enron issue debt run day day business downgrade also adds uncertainty potential merger rival dynegy inc talks acquire enron dynegy enron asked expedited review merger moody standard poor enron shares traded friday new york stock exchange 1 15 7 25 copyright 2000 dow jones company inc rights reserved companies markets dynegy throws enron 44 bn lifeline damon kitney bloomberg 11 12 2001 australian financial review 10 copyright john fairfax group pty ltd one world largest energy trading groups enron corp staved financial collapse securing us 23 billion 44 8 billion rescue bid dynegy ending crisis threatened cause major disruption us power natural gas markets enron shares plunged 90 per cent year following investigations us regulatory authorities accounting irregularities limited ability finance operations terms deal struck united states friday investors receive 0 2685 dynegy share enron share worth usl 0 41 based dynegy closing price friday chevrontexaco corp 26 per cent shareholder dynegy agreed provide enron upfront cash injection usl 5 billion dynegy said would assume usl 5 billion enron debt new company us 90 billion assets dynegy shareholders including chevrontexaco 64 per cent new company enron holders rest however deal likely opposed consumers california dynegy enron blamed soaring electricity prices left state biggest utility bankrupt second largest fighting government bailout recent months enron shares plunged investors began question accuracy enron financial statements saying unclear whether company using affiliated partnerships move debt books hide losses friday company restated earnings past four years lowering us 500 million include losses partnerships kept books merger announcement standard poor investors service said may lower dynegy debt rating cut enron bbb one notch junk dynegy annual revenue us 200 billion 22 000 mw electric generating capacity 40 000 km pipeline merger company would save much us 500 million year winding enron business outside trading pipelines cutting costs dynegy said two houston based companies began negotiations week ago became apparent enron needed cash stay business dynegy agreed terms moody investors service maintained investment grade rating enron eliminating stumbling block negotiations moody announcement removed threat junk rating would force enron repay early 3 3 billion bonds enron fired chief financial officer mr andrew fastow last month us securities exchange commission investigation focused partnerships headed helped create enron estimated mr fastow made us 30 million partnerships affiliated copyright 2000 dow jones company inc rights reserved indian court bars enron serving final termination notice 11 12 2001 asia pulse c copyright 2001 asia pulse pte ltd mumbai nov 12 asia pulse mumbai high court friday ad interim order restrained enron dabhol power company dpc serving final termination notice maharashtra state electricity board mseb december 3 order delivered justice k deshmukh ordered status quo maintained dispute dpc mseb resulted former serving preliminary notice board court hearing notice motion suit filed financial institutions led industrial development bank india others urging directions restart plant generate power investments secured judge ruled 14 day period beginning november 19 dpc could serve final termination notice per ppa would expire behalf plaintiffs solicitor general harish salve argued financial institutions ensuring safe returns lendings rs 130 billion 2 7 billion investment controversial 2184 mw project debt component 65 per cent amounting rs 85 50 billion debt component indian fis exposure tune rs 60 billion disclosed way secure loans plant made operational dpc gets revenue power generation said counsel dpc ram jethmalani disagreed salve submission necessary restart plant secure investments fis pti 12 11 1226 copyright 2000 dow jones source world reporter tm financial times dynegy agreed 7 8 bn e 8 7 bn rescue bid enron end last week largest us electricity gas trader narrowly escaped credit ratings cut junk status moody ratings agency reduced credit rating enron unsecured debt baa 2 baa 3 briefed previous day enron enron new rating one notch junk status deeper downgrade would forced enron sell stock cover 3 3 bn obligations could deterred dynegy dynegy offering 0 27 shares per enron share valuing bid 10 40 per enron share 21 enron price close trading friday enron also receive immediate cash injection around 1 5 bn chevrontexaco owns 27 dynegy 1 bn deal closes initial infusion made dynegy chevrontexaco receive rights 1 5 bn merged company stock protect investment dynegy receive preferred stock enron subsidiary owns gas pipeline assets merger completed dynegy would right acquire subsidiary equity merged company called dynegy dynegy executives take roles chairman chief executive officer president chief financial officer chuck watson chairman chief executive dynegy said combined group would keep strong balance sheet straightforward financial structure dynegy added enron accounting issues would detract value businesses predicted annual savings 400 500 acquisition arthur andersen enron auditor understood approved controversial balance sheet arrangement used enron manage trading risks offload debt arrangements heart energy company decision review accounts earlier last week regulatory filing late last week enron indicated decision restate accounts include two balance companies based current information implying full details available third accounting change based new assessment enron said raising questions auditor earlier judgement andersen spokesman refused comment whether auditor vetted complex balance sheet arrangements said firm help companies understand accounting rules apply comment dynegy presumably given fuller franker explanation enron balance sheet mess investors scarcely able carry normally counts due diligence moody decision p indecision meant enron kept investment grade seems got deal done ratings agencies really provide independent analysis times times deal comes amid securities exchange commission investigation enron controversial business practices enron admitted late last week overstated profits nearly 586 understated debt 2 6 bn past four years enron disposal share 2 9 bn indian power plant blocked bombay high court anxiety increased us energy traders starting bypass enron internet based energy trading systems worries company could pay transactions pay back collateral daily telegraph enron problems already affected european energy trading market buying selling power long short term contracts helps balance demand reduces risk price volatility innogy txu understood picking enron lost business restore stability market dynegy may sell enron non trading business uk part financial restructuring guardian comment royal bank scotland insists loan enron understood worth several hundred million pounds fully secured interest payments fully date facility may safe weeks ago copyright 2000 dow jones source world reporter tm bond investors last week concerned demise enron beleaguered us energy trading group trading company would default bonds within days several us investors mainly hedge funds short selling dollar bond matures week said credit traders short selling involves investor selling securities order profit fall prices short selling bonds repaid unheard unless fear issuer make repayment time impossible buy enron credit default swaps type insurance company defaulting short selling took place wednesday day enron headed kenneth lay confirmed talks bought arch rival dynergy news possible merger led hedge funds unwind short positions loss enron fall grace also added pressure auditing firms job diligently arthur andersen enron auditor 1997 2001 accounts enron last week restate enron investors suggested arthur andersen pushed enron hard enough disclose details partnerships complex ties run former cfo andrew fastow arthur andersen faces lawsuit suggests accounting firm compromised enron paying firm standard auditing non auditing fees southern electrical retirement fund oregon said suit maintaining client relationship dependent individual defendants particularly enron lay arthur andersen compromised copyright 2000 dow jones company inc rights reserved andersen faces jeopardy enron accounting error experts say 2001 11 12 08 43 new york andersen faces jeopardy enron accounting error experts say houston nov 12 bloomberg arthur andersen llp may face u securities exchange commission sanction shareholder lawsuits certified enron corp financial reports company disavowed last week inaccurate legal accounting experts said andersen world fifth largest accounting firm served enron outside auditor decade assuring investors company financial statements conformed generally accepted accounting principles last week company reported overstated earnings 586 million four half years inflated shareholder equity 1 2 billion accounting error failed consolidate results three affiliated partnerships balance sheet enron restated financial reports company suffered cash crisis triggered disclosure cut shareholder equity start sec investigation friday enron largest energy trader agreed acquired dynegy inc 23 billion stock assumed debt surprised sec go arthur andersen said alan bromberg securities law professor southern methodist university author six volume treatise securities fraud think hard time ignoring one andersen partner david tabolt said firm cooperating special committee enron board directors appointed investigate accounting problems issues surfaced caused company restate financial statements advise investors rely financial statements audit reports tabolt said adding certainly recognize appropriateness decision settled suits sec shareholders sue accounting company issuing false misleading financial reports publicly traded company andersen year paid 130 million settle lawsuits alleging firm allowed waste management inc sunbeam corp file false financial reports cost investors billions dollars losses lynn turner sec chief accountant three years resigned august said enron andersen ignored basic accounting rule overstated shareholder equity explaining equity reduction last week enron said given common stock companies created enron former chief financial officer exchange notes receivable improperly increased shareholder equity balance sheet value notes basic accounting teach college record equity get cash note cash said turner director center quality financial reporting colorado state university mystery company would violate auditors would miss basic accounting rule number one billion dollars enron paid andersen 52 million last year 25 million auditing 27 million services including business tax consulting due diligence procedures help preparing sec filings according company proxy statement enron andersen declined provide detail fees proportionately larger companies paid outside auditors exxon mobil world largest oil company twice enron 100 1 billion revenue paid 29 percent less auditor llp dynegy also audited andersen paid 3 2 million audit 4 1 million fees 86 percent less enron paid dynegy revenue 29 5 billion 71 percent less enron consulting work john coffee adolf berle professor law columbia university law school said concerned 27 million enron paid andersen non audit work auditor trying cross sell services profit potential would acquiescent coffee asked andersen tabolt defended firm consulting work enron help improve quality financial reporting helping clients understand accounting rules apply said tabolt follow rules profession sec waste management sunbeam cases shareholders sec alleged andersen allowed companies inflate earnings revenue firm agreed last week pay 20 million settle malpractice lawsuit audit work waste management last june andersen agreed pay 7 million civil fine largest ever imposed sec big five accounting firm black eyes april andersen agreed pay 110 million settle securities fraud class action suit filed accounting work appliance maker sunbeam corp appliance maker filed bankruptcy protection february andersen three black eyes row said coffee addressed national institute class actions american bar association friday san francisco group members lawyers collected billions dollars investors securities fraud class action suits public companies beauty contest going said coffee referring meetings taking place conference said law firms courting enron institutional investors right represent energy company auditor andersen tabolt said sec notified firm investigation connection work enron coffee expressed concern sec chairman harvey pitt took agency august may aggressive pursuing accounting fraud predecessor arthur levitt private lawyer pitt represented major accounting firms anyone violates law mean anyone held high standards agency applied nearly seven decades said pitt interview special rules class violator declined comment enron andersen agency investigation dynegy calls sec probe enron financial noise updatel 2001 11 12 06 59 new york dynegy calls sec probe enron financial noise updatel adds enron share trading germany 14 th paragraph houston nov 12 bloomberg dynegy inc chairman chuck watson said convinced enron corp trading operations sound described disclosures affiliated partnerships helped drive enron stock 67 percent three weeks financial noise dynegy agreed friday buy enron least 23 billion including least 8 billion stock 15 billion assumed debt interview merger announcement watson enron chairman kenneth lay discussed houston based companies reached agreement less three weeks enron shares began plunging financial noise partnerships maybe damaged enron brand bit watson said tell impacted high regard industry places enron trading business said enron last week restated earnings four years include losses three affiliated partnerships reducing earnings 586 million six employees enron 20 000 may improperly benefited partnerships lay said sorry six people seem gone somewhat edge dealings transactions absolutely protected business said lost effectiveness lay specify six people referring removed andrew fastow helped set ran many affiliated partnerships chief financial officer oct 24 enron securities filing says fastow made 30 million two partnerships fastow lost effectiveness press coverage affiliates lay said treasurer ben glisan kristina mordaunt managing director corporate counsel enron division also fired enron said corporate filing thursday former employees michael kopper kathy lynn anne yeager position profit partnerships filing said trust people accept representations proposals lay said sometimes get surprised disappointed executives said expect antitrust regulators approve merger two companies different types assets dominate market really anything lays top watson said friday night pipeline business generation business really dynegy shares rose 6 2 percent friday terms enron purchase leaked press watson expects acquisition add 90 cents 95 cents share 35 percent dynegy 2002 earnings enron selling 10 41 share one fifth average price past 12 months enron stock climbed 96 cents 9 59 germany 54 497 shares traded cash crunch rapid decline enron threatened bankrupt company disrupt energy markets enron handles estimated one quarter u electricity natural gas trades falling credit rating made difficult company raise capital needed back trades part purchase chevrontexaco corp owns 26 percent dynegy agreed provide enron 2 5 billion found looked hood core enron still working well ever watson said business pristine nothing partnerships dynegy began taking steps toward acquisition late october watson called lay offer assistance enron growing financial crisis two men said led saturday morning meeting lay kitchen even made breakfast roll watson said eat lay said lay said active manager new company watson said friday lay discussed severance package head enron lay refocused houston operator u natural gas pipelines trading international expansion boosting reported revenue 20 fold since 1995 100 8 billion last year said regret strategy clearly enron gotten involved business turned well lay said pointing money losers azurix inc created supply water build related projects around world newpower holdings inc seller electricity homes small businesses keep mind 12 years ago wholesale merchant trading business today incredibly valuable franchise trading business accounts 97 percent enron revenue buys electricity gas commodities producers sells end users utilities industrial customers also advises big business customers energy use sells gas electricity reassessing steel lumber watson said new company keep trading coal gas power petroleum products plans expand buying assets using develop trading reassess time whether stay trading steel lumber non energy commodities said enron wants shed 65 percent stake dabhol power co india owed 64 million overdue bills state government agency refused pay power prices enron promised contracts strong legal remedies heading path toward arbitration still much like work settlement government lay said potential buyers balked enron 1 billion asking price dabhol neither man would comment whether dynegy plans cut jobs merger happen naming rights enron field major league baseball stadium home houston astros enron paid 100 million name ballpark name company dynegy watson said dynegy acquisition requires approval u securities antitrust energy regulators watson expects soon share details new dynegy regulators european union u k enron operates trading desk owns water company two power plants know required talk anyway watson said think going problems lay said citigroup j p morgan mull 500 mln enron stake dow says 2001 11 12 03 06 new york london nov 12 bloomberg j p morgan chase co citigroup inc may invest 250 million enron corp company advising agreed takeover dynegy inc stop credit downgrades dow jones newswires reported citing people familiar matter dynegy agreed friday buy largest energy trader least 23 billion including least 8 billion stock 15 billion assumed debt moody investors service maintained investment grade rating enron two banks told credit agency mulling 500 million investment bolstering company financial outlook paper said moody decision removed threat junk rating would create cash crunch forcing enron repay early 3 3 billion bonds last month j p morgan citigroup gave enron 1 billion credit line using company pipeline systems collateral paper said investment raises conflict interest issues may take several weeks complete paper said citibank j p morgan spokesmen declined comment moody spokesman also comment dow jones newswires 11 12 enron corp raised hold prudential 2001 11 12 07 26 new york princeton new jersey nov 12 bloomberg data enron corp ene us raised hold sell analyst carol coale prudential securities target price 10 per share hedging bets enron dynegy deal james j cramer realmoney com 11 12 2001 07 25 est enron ene nyse news commentary deal anything definitive fact many loopholes one believe dynegy dyn nyse news commentary may going whole thing learn master learn depending ethics recall deal many breakup provisions pipelines going money going money chevron cvx nyse news commentary dynegy caps liabilities seems bit charade think personally anything enron besides one pipeline generate couple hundred million cash lots liabilities known others idea enron traders trading desk asset heavy assault would want buy something may made money top possibility massive antitrust action brought consumers may scheme keep electricity california market go ahead short dynegy go long enron make sure calls dynegy puts enron put need random musings see cnbc squawk box