text_combined: enron mentions sec seeks information enron dealings partnerships recently run fastow wall street journal 10 23 01 value go enron new york times 10 23 01 front page first section sec probes enron financial dealings financial times oct 23 2001 companies oct 23 2001 enron discloses sec inquiry washington post oct 23 2001 enron suffers unclear disclosure new york times says bloomberg 10 23 01 sec asks enron investing data houston chronicle 10 23 01 minnesota mining gm climb rally builds late day wall street journal 10 23 01 world stock markets wall st bargain hunters counter earnings gloom americas financial times oct 23 2001 milberg weiss announces class action suit enron corp business wire 10 22 01 enron host conference call tues 9 30 edt dow jones news service 10 22 01 janus biggest enron stake end 2 nd quarter updatel bloomberg 10 22 01 enron says sec asks related party transactions update 9 bloomberg 10 22 01 trusts keeping enron balance thestreet com 10 22 01 enron writedown unnerves investors thestreet com 10 22 01 sec seeks information enron dealings partnerships recently run fastow rebecca smith john r emshwiller staff reporters wall street journal 10 23 2001 wall street journal 3 copyright c 2001 dow jones company inc enron corp said contacted securities exchange commission seeking information energy giant controversial dealings partnerships set run recently chief financial officer andrew fastow following enron announcement yesterday morning sec inquiry company stock took another big slide falling 20 new york stock exchange trading 4 p enron shares trading 20 65 5 40 knocking 4 billion enron market capitalization volume topped big board active list 36 million shares week ago enron stock trading 33 share subsequently company announced 1 01 billion third quarter write produced 618 million loss analysts also voiced concerns yesterday possible bad news lurking amid enron vast extremely complex operations company dealings number related entities certain circumstances enron credit rating stock price fall far enough company would obligated issue tens millions additional shares entities diluting holdings current shareholders enron previously acknowledged provisions said business strong feels confident defaults statement enron chairman chief executive kenneth lay said company cooperate fully sec inquiry look forward opportunity put concern transactions rest enron consistently said believes dealings fastow related partnerships proper properly disclosed company said put billions dollars assets stock partnership related transactions way hedge fluctuating market conditions sec inquiry came agency fort worth texas regional office according person familiar matter would indicate inquiry comes sec enforcement arm opposed corporate finance section participation enforcement branch would indicate agency looking whether possible violations securities law however enforcement branch inquiries often produce allegations wrongdoing also appears sec yet taken step launching formal investigation would sign agency believes securities laws might violated sec declined comment certainly questions concerns partnership transactions contributed 1 2 billion reduction shareholder equity last week part enron efforts unwind deals mr fastow declined repeated interview requests resigned partnerships known ljm cayman lp ljm 2 co investment lp late july face rising conflict interest concerns wall street analysts major company investors since internal partnership documents shown mr fastow perhaps handful enron associates made millions dollars last year fees capital increases general partner ljm 2 larger two partnerships mr fastow partnership arrangement caused unhappiness inside enron according people familiar matter instance people say sometime creation partnerships 1999 enron treasurer jeffrey mcmahon went company president jeffrey skilling complained potential conflicts interest posed mr fastow activities mr skilling share mr mcmahon concern people say mr mcmahon requested received reassignment another post mr skilling resigned enron president chief executive mid august citing personal reasons fall enron stock price peaked 90 share last year mr mcmahon mr skilling responded repeated interview requests investors also concerned potential problems arising enron dealings related entities cases enron could required issue large amounts stock noteholders entities certain called double trigger provisions occur example last july enron helped create marlin water trust ii sold 915 million notes due july 15 2003 however enron considered default advance date stock price falls 34 13 three trading days senior debt downgraded investment grade either moody investors service standard poor currently enron debt still investment grade ratings agencies would lowered several notches fall noninvestment grade category last week moody put enron review possible downgrade however observers believe even moody lowers enron rating company still investment grade copyright 2000 dow jones company inc rights reserved october 23 2001 value go enron floyd norris new york times really went opaque transactions insiders ever seen wall street puzzling since enron news quote senior columnist thestreet com 10 22 2001 07 15 edt url enron trying improve disclosure investors decision reduce equity 1 2 billion third quarter created dismay confusion market action disclosed dubiously discreet manner important investors struggling pinpoint shrinkage affect enron balance sheet profits earnings guidance enron provide answers questions submitted equity reduction enron include balance sheet earnings release equity decrease spotted numbers supplied tuesday even though enron break 1 billion earnings charges release company feel necessary mention equity write anywhere text instead public first heard tuesday conference call ceo kenneth lay said enron shrunk equity result terminating called structured finance arrangement wall street journal later reported enron counter party transaction investment partnership called ljm 2 co investment set run enron finance chief andrew fastow lay said tuesday call equity move connection early termination shareholders equity reduced approximately 1 2 billion corresponding significant reduction number diluted shares outstanding according journal lay said wednesday another call enron repurchased 55 million shares enron supporters count lay mention reduction share count bullish boost earnings per share numbers future two possible problems theory first enron affirmed previous earnings guidance expects make 2 15 per share operating earnings next year critically company say whether guidance given using share count without 55 million shares forecast assume exclusion 55 million shares company upped 2002 per share earnings forecast around 6 since amount share count reduced enron needs say share count using guidance second almost impossible determine shares ever recorded casting certain amount doubt lay assertion share count come question ceo well 2000 annual report enron included disclosure 55 million shares connected ljm 2 reads december 31 2000 enron derivative instruments 54 8 million shares enron common stock derivative instruments appear types options agreements give counterparty right buy sell stock agreed prices derivatives linked shares show annual report table breaks difference basic diluted share counts line item table shows options related shares totals 43 million shares close amount employee pay options qualified inclusion therefore number almost certainly include 55 million ljm 2 related shares fact least 55 million derivatives linked shares included derivatives like normal options ljm 2 derivatives appear money profitable holders typically money options based stock included diluted share count ljm 2 derivatives appear status end 2000 back enron stock trading around 80 way average 68 level derivatives made money ljm 2 maybe simple options conditions attached excluded diluted share count disclosure elsewhere annual report appears imply alternatively options embedded somewhere else share count table equity disclosure though hard think presumably investors get full explanation enron quarterly financial results filing securities exchange commission due middle november