enron mentions 11 26 01 dynegy seems options enron deal wall street journal 11 26 01 volatility fell slightly light holiday trading enron calls lilly puts attracted interest wall street journal 11 26 01 instant powerhouse energy trading businessweek 11 26 01 eyes enron prize deal holds dynegy walk away juicy assets businessweek 11 26 01 confused earnings alone companies investors need know businessweek 11 26 01 end numbers game businessweek 11 26 01 free clear enron woes businessweek 11 26 01 companies finance international enron still optimistic averting financial meltdown financial times 11 26 01 schwab chief main theme diversification wall street journal 11 26 01 enron pursuing cash infusion energy company seeking much 1 billion tries shore endangered acquisition dynegy los angeles times 11 26 01 dynegy optimistic enron merger succeed ft dow jones international news 11 26 01 dynegy purchase prompts antitrust concerns l times says bloomberg 11 26 01 enron hopes infusion capital seeks us 500 talks dynegy merger continue national post 11 26 01 india aditya birla eyeing enron stake dabhol dow jones international news 11 26 01 enron scandal business standard 11 26 01 india mehta comments birla group offer buy enron stake bloomberg 11 26 01 dynegy seems options enron deal rebecca smith robin sidel staff reporters wall street journal 11 26 2001 wall street journal 3 copyright c 2001 dow jones company inc stock market telling dynegy inc energy trader enron corp worth even half dynegy offered pay analysts investors paying close attention circumstances dynegy could bargain lower price even walk away merger deal earlier month houston based dynegy offered buy far larger cross town rival stock deal currently values enron shares 10 85 apiece total 9 2 billion wake post agreement disclosures enron future earnings likely substantially less expected company stock hammered 1 p trading new york stock exchange friday enron shares fell 30 cents 4 71 stock 94 far year far short per share takeover price dynegy shares rose 64 cents 40 40 although dynegy enron say going ahead deal terms negotiated dynegy appear options agreement enron contains broad material adverse change clause well specific trigger points could invoked dynegy officials performed due diligence throughout holiday weekend seeking learn intimate workings enron suffered series damaging blows since mid october enron disclosed officers participated personally enriching deals moved assets enron balance sheet time several private partnerships deals subject securities exchange commission investigation past treatment deals termed accounting error enron twice rejiggered earnings since oct 16 one point enron restated downwards nearly five years earnings enron spokeswoman said company proceeding belief deal would completed agreed dynegy spokesman john sousa said two sides forging ahead although acknowledged walk away provisions broad design ensure adequate protection dynegy shareholders shareholders firms must still vote merger agreement clauses related material adverse change also known material adverse effect focus much attention among merger professionals year due part stock market fluctuations economic slowdown caused buyers reconsider planned acquisitions clauses rarely invoked buyer seller considered extremely difficult prove parties typically reluctant lay specific terms canceling deal much way bride groom often balk negotiating prenuptial agreement since appears envisage breakup marriage even begins furthermore key court case earlier year affirmed widespread views buyer easily walk away merger case meat processing concern tyson foods inc sought cancel planned acquisition meat packer ibp inc due drop ibp earnings write ibp subsidiary delaware judge refused let tyson cancel pact saying tyson aware cyclical nature ibp business accounting issue lengthy june 18 opinion delaware chancery court vice chancellor leo e strine jr wrote important thing whether company suffered material adverse effect business results operations consequential company earnings power commercially reasonable period one would think would measured years rather months interpretation created ripples deal making community prompting transactions include details circumstances deals terminated since sept 11 attacks example handful merger agreements specified future terrorist activity would qualify material adverse change mac key issue firm alleging material adverse change whether new facts go guts strategic opportunity hiccup says meredith brown co chairman mergers acquisitions group law firm debevoise plimpton new york adds court may skeptical dynegy claimed enron post merger agreement disclosures surprise enron dynegy merger agreement includes several triggers permitting either side seek termination enron quit deal receives substantially better offer although prohibited soliciting one case could required pay 350 million topper fee dynegy co investor chevrontexaco inc dynegy alter deal enron faces pending threatened litigation liabilities reasonably likely cost enron 2 billion liabilities hit 3 5 billion enron material event deemed occurred presumably allowing dynegy call whole thing situations dynegy would liable 350 million fee well karen denne enron spokeswoman said firm believe losses arising normal course business would qualify material event liability must result litigation currently company faces dozen shareholder suits alleging breach fiduciary duty officers directors issuing false misleading reports offenses deal makers involved combination say steep drop enron stock price since merger agreement signed give dynegy ability cancel pact force enron renegotiate terms instead say dynegy would likely prove enron worsening financial condition unanticipated event could difficult light company highly publicized problems dynegy frequent statement clearly understands enron businesses still another standard clause merger document would allow dynegy terminate deal representation warranty enron shall become untrue energy companies abandoned deals following widening gap stock prices changed acquisition premium western resources inc topeka kansas last week sued public service co new mexico seeking hundreds millions dollars damages failed buy western utilities lawsuit accused public service breaching duty good faith fair dealing said new mexico company tried sabotage deal two companies stock prices diverged public service denies accusations copyright 2000 dow jones company inc rights reserved options report volatility fell slightly light holiday trading enron calls lilly puts attracted interest cheryl winokur munk dow jones newswires 11 26 2001 wall street journal b 8 copyright c 2001 dow jones company inc new york options market dozed many participants stayed home recover much turkey football chicago board options exchange market volatility index vix measures certain standard fall shows investor optimism volatility dropping post sept 11 levels recent weeks amid victories taliban afghanistan interest rate cuts federal reserve central banks vix ranged 30 40 several weeks following attacks volatility likely remain low said mika toikka head options strategy credit suisse first boston typically going thanksgiving december holidays tend experience seasonal drift lower implied volatility would expect year especially markets outside u volatility still lingering high levels mr toikka wrote recent research note cboe nasdaq volatility index vxn sentiment barometer technology sector fell 1 86 50 82 american stock exchange nasdaq volatility index qqv dropped 1 03 42 74 elsewhere options market calls enron corp embattled houston energy trading company continued trade briskly one investor buying 10 000 january 5 calls simultaneously selling 12 250 january 10 calls 14 800 january 5 contracts traded compared open interest 3 640 shares fell 33 cents 6 6 4 68 calls cost 1 40 american stock exchange volume traded 15 000 january 10 contracts traded compared open interest 30 674 money calls cost 30 cents amex eli lilly co december 80 money puts also popular friday shares fell 91 cents 1 1 82 42 morgan stanley cut rating company neutral outperform saying stock become expensive even food drug administration approval potential blockbuster drug xigris treats septic infections 3 000 puts traded compared open interest 6 427 cost 1 25 cboe saw much volume copyright 2000 dow jones company inc rights reserved corporation acquisitions instant powerhouse energy trading louise lee san mateo calif 11 26 2001 businessweek 96 copyright 2001 mcgraw hill inc easy 4 despite 35 billion merger completed october chevrontexaco corp still one oil superpowers 90 billion year revenues scrappy little guy chairman david j reilly searching strategy beyond drilling oil gas may something big stake 1 energy trading company chevron corp owned 26 dynegy inc since 1996 dynegy planned acquisition enron corp top energy trader chevrontexaco making oil industry aggressive push yet fast growing business plans eventually pump 2 5 billion combined dynegy enron maintain 26 stake might raise share chevrontexaco much bigger rivals run small house trading operations energy trading may soon account 10 chevrontexaco earnings chevron positioned leader business says analyst arjun murti goldman sachs likely target natural gas company maybe bad 4 illustration chart chevron growing cash hoard copyright 2000 dow jones company inc rights reserved corporation acquisitions eyes enron prize deal holds dynegy walk away juicy assets stephanie anderson forest wendy zellner dallas peter coy emily thornton new york 11 26 2001 businessweek 94 copyright 2001 mcgraw hill inc houston based enron corp imploded amid dizzying scandal finances would blamed dynegy inc ceo charles l watson sat back gloated watson watched bigger brasher crosstown rival sniffed dynegy cautious strategy garnering credit reshaping energy trading business instead watson picked phone oct 24 called enron chairman ceo longtime acquaintance kenneth l lay ask could help lay respond immediately enron stock continued plunge company faced cash squeeze became clear realistic answer could bail us two days later lay invited watson river oaks home near downtown houston breakfast discuss deal muffins bad cup coffee next day watson recalls sketched outlines 10 p night investment bankers called nov 9 dynegy announced would pay 10 billion plus assumption 13 billion debt buy enron nearly four times size key deal dynegy immediate 1 5 billion infusion cash shore enron balance sheet save credit rating money came dynegy 26 owner chevrontexaco corp without help enron seventh largest u company based 100 billion sales last year may well faced bankruptcy watson says never would imagined outcome wildest dreams think anybody foresaw problems enron says incredible watch watson 51 make good may well riskiest investment yet pull new dynegy revenues 200 billion 90 billion assets including 22 000 megawatts power generating capacity 25 000 miles pipeline would control estimated 20 25 energy trading market 6 would sweet vindication watson strategy dynegy backs trading operations hard assets power plants allows company guarantee supply electricity buyer contrast enron worked furiously shed power plants oil gas generating fields believing could earn higher returns using trading technology expertise tap assets owned others markets including steel pulp paper irresistible bargain enron stock slid 9 august 2000 high 90 became bargain watson pass would taken years dynegy build market making operation match enron risk management systems top line enron commercial services unit manages power supplies corporate customers wendy international inc three four years ahead dynegy says steve bergstrom president dynegy watson says still plans get rid 8 billion worth assets lay earmarked sale including portland ore general electric plant oil gas assets india 1 5 billion though deal falls dynegy right enron prized northern natural gas pipeline worth estimated 2 25 billion dynegy walk away enron legal liabilities exceed 3 5 billion watson firmly believes enron suffered crisis confidence meltdown core business indeed enron wholesale trading operation earned 2 3 billion last year says watson know business looked hood guess strong thought trading profits obscured recent weeks enron accounting tricks biggest danger watson time bombs ticking away already company slashed reported earnings since 1997 591 million 20 total account controversial partnerships involving enron officials securities compare fraternity dynegy decision issue new stock options enron employees may soothe battered egos help lay decided take 60 million golden parachute could received buyout lay management job new company dynegy often seemed enron wannabe following online trading commercial services still dynegy 361 stock gains last year eclipsed enron 87 rise rankled lay execs got credit chuck watson may spotlight always forefront business says bruce withers sold trident ngl inc dynegy 1995 watson get attention next year 15 owner new houston texans pro football team bold takeover enron watson ensured sidelines good photograph dynegy watson says enron core business strong others worry accounting tricks turn photograph najlah feanny corbis saba illustration chart powering dynegy chart laurel daunis allen bw copyright 2000 dow jones company inc rights reserved cover story confused earnings alone companies investors need know nanette byrnes david henry mike mcnamee washington 11 26 2001 businessweek 76 copyright 2001 mcgraw hill inc age giant earnings write offs become commonplace hard shock wall street nov 8 enron corp managed years high octane growth seen earnings surge 24 year houston based energy company acknowledged results past three years actually overstated half billion dollars confirmation investors worst fears three weeks earlier enron announced big drop shareholders equity sparking fears hideously complex financial statements distorting true performance management pointed number factors including dubious decision exclude results three partnerships financial statements billion dollar error several years earlier inflated company net worth enron may extreme example company whose performance fell far short glowing picture painted management earnings releases hardly alone year corporate america expected charge record 125 billion much assets investments inventory worth much management thought chart page 79 even companies go back restate earnings enron charges cast doubt record breaking earnings growth late 90 since 1930 quality corporate earnings issue difficult investors determine stake fortunes bought shares based misleading numbers even sophisticated financial minds figure company actually earns implications far beyond enron u financial markets reputation integrity took decades build made u gold standard financial reporting preeminent place invest also ensured ready access capital u corporations company enron member standard poor 500 stock index one largest companies new york stock exchange could fall far fast shows badly gold standard tarnished profession auditing accounting fact crisis says paul volcker former chairman federal reserve one leaders international accounting standards board sometimes case enron fuzzy numbers result questionable decisions figuring net earnings often though earnings chaos results disturbing trend among companies calculate profits idiosyncratic ways increasing willingness among investors analysts accept nonstandard tallies appear variety names pro forma core enron offers version investors untangled importance enron first announcement stock rose briefly told investors recurring net income met expectations resulting murk makes difficult answer basic question investing company earn calculate second set earnings first place numbers reached applying generally accepted accounting principles gaap woefully inadequate comes giving investors good sense company prospects many institutional investors wall street analysts even many accountants say gaap irrelevant know anyone uses gaap net income anymore anything says lehman brothers inc accounting expert robert willens problem gaap includes lot noncash charges one time expenses investors need aware charges also need number pertains solely performance ongoing operations operating earnings supposed calculated ad hoc manner company free use rules comparisons companies become meaningless investor certainly ordinary investor read way useful says harvey l pitt chairman securities exchange commission sec examining whether new rules needed clarify financial reports perhaps restrict use pro formas badly needed set rules calculating operating earnings requirement make clear relate net income end investors need two numbers standardized operating number audited net income number clear explanation get one hand widespread consensus building early november p proposed set rules companies follow tallying operating earnings week financial accounting standards board rulemakers gaap announced would taking issue volcker says international accounting standards board also seeking uniform definition operating earnings past two three years use creative earnings measures grown grown grown point really gotten hand says david blitzer p chief investment strategist earnings one key measures anybody looks trying evaluate company people want use operating earnings measure better know looking without standards place gap earnings according generally accepted accounting principles earnings according wall street going grow wider confusing look variance earnings per share calculated p 500 third quarter 10 78 according wall street analysts tallied thomson financial first call 9 17 according p 6 37 according numbers reported sec gaap p like businessweek owned mcgraw hill companies lack standard measure costly choose wrong use first call earnings past four quarters get relatively modest price earnings ratio 23 p 500 run numbers using gaap earnings suddenly market far steeper p e 38 get mess investors analysts calculating operating earnings years years reasonable people could less agree came dot com bubble along increased pressure wall street companies meet quarterly earnings forecasts suddenly companies turned profit conventional measure started offering ever inventive earnings variants customized pro forma calculations excluded grab bag expenses allowed upstart companies show profit tower babel pro forma formulas vary wildly company company even quarter quarter within company casting doubt validity days gulf net earnings pro forma earnings wider ever p tallies fall two p numbers systematic pro forma followed widely enough standard investors facing tower babel says robert k elliott former chief american institute certified public accountants aicpa retired kpmg partner standardized numbers audited makes tough evaluate company performance quarter ended sept 30 nortel networks corp offered shareholders least three earnings numbers choose conservative gaap accounting telecommunications giant lost 1 08 share company also provided two possible pro forma options 68 cents loss excluded special charges including acquisition costs restructuring charges still better 27 cents loss excluded 1 9 billion incremental charges writing inventories increasing provisions receivables wall street chose rosiest one confusing bet companies defend pro forma calculations pointing merely filling void investors clamoring measure gives better insight company future goal get core business try measure outlook operations good reasons emphasis operating earnings says volcker effort provide continuity reflection underlying progress company besides companies like point still report gaap earnings investors free ignore everything else starker lesson shortcomings gaap 50 billion asset write downs jds uniphase corp biggest charge year near height telecom bull market july 2000 san jose calif maker fiber optics topped buying spree acquiring competitor sdl inc 41 billion stock deal closed february assets ballooned 25 billion 65 billion shares jds fiber optics makers collapsing bring acquisitions line new value company took charges 50 billion despite fact bulk losses stemmed stock transactions involved cash paid gaap required charges taken net income according gaap jds lost 56 billion fiscal year ending june staggering figure company whose revenues past five years added 5 billion analysts company argue besides involving cash charge past right sizing values gotten hand analyze company prospects excluded 50 billion charge accounting designed make things look better describe happened says jds uniphase chief financial officer anthony r muller live consequences whatever analysts make similar defense goal figure business going produce value company says lehman brothers analyst arnab chanda glacial pace jds pro forma numbers realistic fair gauge jds ongoing operations right hard investors judge kind ambiguity p others would like eliminate november p circulated memo standardize operating earnings proposal operating earnings would include costs purchases research development restructuring costs including severance write downs ongoing operations cost company stock options would exclude merger acquisition expenses impairment goodwill litigation settlements gain loss sale asset p applied roughly formula jds uniphase split difference wall street gaap differences group included earnings calculations results chaotic using gaap company lost 9 39 share p figures lost 3 19 company put loss 36 cents meanwhile wall street says made 2 cents p standard may make sense raises question financial accounting standards board group charge gaap chairman edmund l jenkins says fasb addressing problems still investors expect improvement soon pace change fasb tends glacial typically takes four years complete new standard 1996 example board realized standards restructuring charges big loopholes resolved put issue agenda june 2000 board finally issued draft new standard asked comments held public hearing october 2001 board said still ready put fix place recession set another wave restructuring charges fasb still new rules slow pace means standard setters sometimes fail react sudden changes market recent failure followed terrorist attacks september 11 fasb task force unable come set rules separating september 11 costs general expenses instead told companies disaster could treated extraordinary item gaap earnings include costs stemming disaster part company general performance many companies nevertheless broken costs unaudited press releases many likely fourth quarter indeed 2001 shaping one record books poor economy devastating aftereffects september 11 resulted slew unusual charges unlikely recur one could foreseen growing concern earnings fog providing managers cover hide missteps past within vast category supposedly one time charges temptation take big charge possible investors braced bad news managers sweep away yesterday errors tomorrow earnings look even better basic question comes constitutes special expense charge unusual include earnings calculation would distort truth company performance usually big charges fall categories including charges laying workers restructuring company charges assets lost value since purchased charges investments lost value charges inventory become obsolete recent study harvard business school professor mark bradshaw found companies increasingly calling charges unusual gives rationale excluding pro forma calculations lots critics disagree saying charges often inevitable part business cycle reflected company earnings history certainly ignored investors charges real shareholder wealth lost argues david w tice manager prudent bear fund mutual fund pessimistic bent 17 far year money spent something longer worth correction past earnings reserve costs moving forward whatever reason real cost company hurts shareholders without standards excessive write offs operating earnings obscure actual performance without rules companies calculate operating earnings inconsistently order put companies best possible light dell computer corp good example heads win tails lose school accounting years dell benefited gains venture capital investments happy include gains reported earnings appeared separate line income statement year gains turned losses computer maker issued pro forma numbers excluded 260 million drag dell spokesman michael maher says company press releases sec filings break investment income give gaap numbers well pro forma view numbers reported clearly says maher consuming public past puffery many experts believe special charges sign past performance exaggerated investors make company gateway inc two restructuring charges first third quarters minus small extraordinary gain totaled 1 12 billion 100 million company made 1998 1999 2000 combined truer picture performance potential write offs earnings write offs customer financing another example nortel increased reserves credit extended customers 767 million september effectively admitted booked sales past companies pay effect overstating performance earlier periods addition nortel says booking sales accounting credit unrelated issues tech companies blame sharp downturn industry big write offs isolated examples peter l bernstein publisher newsletter economics portfolio strategy found 1989 1993 20 earnings vanished write offs big charge offs also distort future performance critics contend excess reserves often used sort cookie jar earnings taken future quarters meet wall street expectations charges taken year example apt lousy one companies anyway might include costs would otherwise taken future periods prepaying costs gives big boost later earnings rules figuring operating earnings would help area always involve certain amount judgment therefore invite certain amount abuse people going write everything next two quarters bad year anyway says robert g atkins mercer management consultant part lure big special charges investors tend shrug believing bad news open company poised brighter future since gateway detailed third quarter charge 571 million oct 18 wall street bid stock 48 compared 6 runup p 500 often though investors take exactly opposite message example part restructuring involves slashing employee training information technology spending research development cuts could depress future performance says baruch lev professor accounting stern school business new york university really one time events asks beginning avalanche indeed morgan stanley dean witter co strategist steve galbraith found year following big charge earnings companies underperformed stock market 20 percentage points la la land investors apt faced huge write offs next year even economy continue worsen transition new gaap rule changes way companies account goodwill balance sheet asset reflects amount paid acquisition net value tangible assets new rule companies assess properties periodically decrease worth balance sheet value falls informal survey financial executives international member controllers financial officers found least third expect take charges figuring proper value assets easy task unless comparable company factory established market price valuing involves lot guesswork firm rules really coming corporations auditors coming tests impairment says stern school professor paul r brown la la land tidal wave special charges providing cover earnings games could also impetus change especially wake dot com fiasco indeed signs backlash real estate investment trust industry pioneer engineered earnings funds operations ffo reits begun revert plain old gaap earnings hamid r moghadam ceo san francisco based amb property corp shifted back gaap 1999 reason like ffo simple says moghadam one company numbers look better another one even identical fundamental results steps fasb could take improve financial reporting restore gaap status trevor harris accounting expert morgan stanley says could force companies make clear distinctions income operations income financial transactions lehman willens says companies provide information cash expenses bear earnings easy step would require companies file press releases sec least says lev companies must clearly explain pro forma numbers relate gaap numbers otherwise says investors see numbers floating come today environment unregulated pro forma calculations supersize write offs question important investors high gloss glossary companies using variety accounting practices put best spin results terms mean defining earnings net income bottom line according generally accepted accounting principles gaap sometimes called reported earnings numbers securities exchange commission accepts filings operating earnings adjustment net income excludes certain costs deemed unrelated ongoing business although sounds deceptively like gaap figure called operating income revenue minus costs business audited figure core earnings another term operating earnings neither core operating earnings calculated according set rules include exclude anything preparer wishes pro forma earnings 1990 term operating earnings popularized dot coms sometimes excludes basic costs marketing interest ebitda earnings interest taxes depreciation amortization granddaddy pro forma initially highlighted industries carried high debt loads cable tv since come widely quoted adjusted earnings new term pro forma defining costs special charges general term anything company wants highlight unusual therefore excluded future earnings projections asset impairments charges taken bring something company paid high price current market value many companies taking charges internal venture capital funds bought internet high tech stocks inflated prices goodwill impairments idea asset impairments except used write premium company paid fair market value net tangible assets acquired charges explode first quarter 2002 change mergers acquisitions accounting eliminates goodwill amortization requires holdings carried fair values restructuring reserves accrued expense usually cash cover future costs closing portion business plant firings projected costs overstated later become boost earnings reversed write lowering value asset plant stock investment often excused bookkeeping exercise may real cost long ago proves ill spent may associated cash costs investment banking fees illustration chart big bath chart eric hoffmann bw illustration chart earnings chaos chart eric hoffmann bw copyright 2000 dow jones company inc rights reserved editorials end numbers game 11 26 2001 businessweek 130 copyright 2001 mcgraw hill inc company earn basic question investor ever ask equity culture generated much growth years depends clear answer getting one become impossible enron corp announced earnings past three years overstated half billion dollars one biggest companies new york stock exchange manage inflate earnings 20 without auditors analysts ratings agencies business press businessweek included discovering part blame breakdown standardized accounting rules anarchy runs rampant financial statements corporate america u needs new set accounting rules gives clear picture financial performance without integrity financial reporting u hope remain preeminent place invest global marketplace page 76 dot com bubble first indication something seriously wrong accounting standards companies without much business model customized quarterly statements exclude grab bag expenses order put positive financial spin operations wall street conspired encouraged big companies join soon method calculating earnings began vary company company even quarter quarter within company chaos stricter adherence accounting rules solve entire problem gaap generally accepted accounting principles allow kinds one time expenses noncash charges obscures performance ongoing operations one fathom true operating earnings guidelines constitutes extraordinary expense result total confusion take earnings per share standard poor 500 stock index second quarter thomson financial first call standards 11 82 9 02 according p 4 83 gaap investors make intelligent decisions financial accounting standards board clearly failing job promised write set rules calculates operating earnings relates net earnings delivered rating agency standard poor owned mcgraw hill companies businessweek better job recently drew definition operating earnings includes restructuring costs including severance writedowns ongoing operations cost stock options excludes merger acquisition expenses litigation settlements impairment goodwill gains losses asset sales beginning fasb build accounting anarchy end copyright 2000 dow jones company inc rights reserved front afterlives free clear enron woes edited sheridan prasso stephanie anderson forest 11 26 2001 businessweek 16 copyright 2001 mcgraw hill inc back enron heyday one rising stars rebecca mark nicknamed mark shark ferocious ambition made name early 90 building energy giant international operations including troubled dabhol power plant india rumored successor enron ceo ken lay resigned enron august 2000 two years heading enron ailing water company spin azurix days enron struggles stay afloat mark jusbasche hyphenated name husband two years watching action sidelines like keep way surprised saddened happened enron wish best says beyond mark jusbasche 47 much interested talking enron acquired small rival spectacular wall street flameout mark left enron millions dollars worth enron shares although says sold since mark jusbasche spends time serving advisory boards yale harvard business schools well school 16 year old twin sons previous marriage sophomores spare time seeks opportunities investing currently mark jusbasche considering alternative energy water technology companies farm girl missouri one investment focus especially dear heart looking expanding cattle ranches owns 15 acres new mexico things fun interesting important family community says sure beats anywhere near enron photograph mark bystander photograph brett coomer ap wide world copyright 2000 dow jones company inc rights reserved companies finance international enron still optimistic averting financial meltdown andrew hill sheila mcnulty 11 26 2001 financial times c 2001 financial times limited rights reserved enron said yesterday still expecting outside investors inject 500 1 bn group talks continued avoid financial meltdown energy trading group dynegy whose rescue bid houston rival crucial enron survival spent last week thanksgiving holiday weekend reviewing enron operations finances dynegy said remained optimistic potential merger completed time frame originally announced six nine months enron fate depends delicate unofficial pact lenders dynegy credit ratings agencies resisted downgrading group debt deal pending pact stays place least 500 likely invested enron jp morgan chase citigroup enron key lenders advisers 500 sought private equity firms dynegy pulls deal cash infusion could put jeopardy ratings agencies could downgrade debt junk triggering debt repayments across network partnerships balance sheet vehicles linked enron enron confirmed yesterday still seeking additional liquidity new equity investors would discuss identities enron crisis confidence became acute last week shares fell 9 4 74 following regulatory filing revealed extent group debt burden completion 1 bn secured credit line jpm chase citigroup postponement 690 notes repayment due tomorrow sufficient prop share price bonds also fell levels consistent potential bankruptcy filing slide share price encouraged speculation dynegy preparing renegotiate stock bid worth 9 3 bn compared enron market value 3 5 bn people close enron say renegotiation deal would impact energy group finances latest news www ft com enron c copyright financial times ltd rights reserved http www ft com copyright 2000 dow jones company inc rights reserved schwab chief main theme diversification lynnette khalfani dow jones newswires 11 26 2001 wall street journal copyright c 2001 dow jones company inc new york two months sept 11 terrorist attacks many investors remain edgy stock market initial selloff shown remarkable resilience observers expect stock market volatility subside soon still experts say ever time skittish investors keep wits recent interview charles r schwab chairman co chief executive charles schwab co san francisco based online discount brokerage firm gave views investors mistakes avoid excerpts interview wake sept 11 attacks much risk think financial markets think people perceptions risk changed investing since 1959 say year year risk changed risk always risk investing stocks bonds even u treasuries interest rate fluctuations risk real estate question handle best way diversify long period time people diversify investments pretty darned well sometimes fatal stock investor owned enron cisco 70 pretty fatal say people say scared invest right threat terrorism anthrax scares war afghanistan recession forth much uncertainty markets remember back cuban missile crisis feared worst building bomb shelters scary time terrorist thing different awful particularly children country wealthy terms resources intellectual capital strength government uncertainty today times past example many recessions fun especially begin reading layoffs fact think unemployment rate 5 4 pretty easily might get 6 5 gets better probably get better march april also stock market go hopefully economy goes 2 trillion sitting money market accounts huge resource buying power definitely available new investments think biggest mistake investors made past two months let emotions take fear people use rational thinking used emotional thinking sept 11 sold low fear driver year half ago driving emotion greed going avoid stuff issue manage cycles fear greed even fearful something say still time invest biggest worry right people give say want stock market time people hanging keeping diversified portfolio mistakes lot people hang stock poster child last cycle people say get back market see economy turn around well time see late missed whole ride back copyright 2000 dow jones financial desk enron pursuing cash infusion energy company seeking much 1 billion tries shore endangered acquisition dynegy bloomberg news 11 26 2001 los angeles times home edition c 2 copyright 2001 times mirror company houston enron corp said talks continuing potential investors infusion much 1 billion biggest energy trader tries avoid collapse planned purchase dynegy inc investment would ease concern enron weakened finances may prompt dynegy pull renegotiate terms transaction valued 23 billion stock assumed debt enron seeking additional 500 million 1 billion cash divulge details going discuss particulars talking enron spokeswoman karen denne said sunday shares houston company fell 48 last three trading sessions new york stock exchange friday closing price 4 71 stock sells less half 10 85 dynegy slated pay acquisition sign investors skeptical transaction go planned enron likely approached kohlberg kravis roberts co blackstone group carlyle group private equity investment said industry analyst david snow net firms declined comment conference call nov 14 enron chief financial officer jeffrey mcmahon said company talks several private investors expects receive 500 million 1 billion sources wednesday enron got three week reprieve lenders 690 million note due week gaining time restructure finances dynegy chief executive chuck watson said encouraged commitment extend note payment well closing 450 million credit facility said dynegy remained committed purchase enron already received 1 5 billion cash nov 13 chevrontexaco inc part dynegy buyout agreement return dynegy received preferred stock rights enron unit owns northern natural gas co pipeline deal terms dynegy enron fail merge dynegy acquire pipeline company barron reported weekend dynegy right pipeline might challenged j p morgan chase co salomon smith barney inc accepted asset collateral 1 billion loans enron dynegy spokesman john sousa declined comment enron attempts secure financing whether cash enron condition keeping merger alive enron dealings affiliated partnerships led federal investigation company restated earnings saw credit ratings cut company said securities exchange filing week ago less 2 billion cash credit lines left copyright 2000 dow jones company inc rights reserved dynegy optimistic enron merger succeed ft 11 26 2001 dow jones international news copyright c 2001 dow jones 44 0 20 7842 9345 sarah spikes dowjones com copyright 2000 dow jones company inc rights reserved dynegy purchase prompts antitrust concerns l times says 2001 11 26 07 36 new york washington nov 26 bloomberg california attorney general bill lockyer examining dynegy inc proposed acquisition rival energy seller enron corp possible antitrust violations los angeles times reported california independent system operator manages state electric grid asked federal regulators ban dynegy major power sellers including mirant aes corp williams cos selling electricity market prices state times said throughout state power crisis governor gray davis officials accused dynegy enron power companies withholding electricity manipulating cost wholesale power gouge consumers times said enron negotiating bankers restructure 9 15 billion debt would hope people look antitrust implications would consider one carefully california state senator steve peace democrat told times anything dynegy would even stronger position able manipulate markets financial post news enron hopes infusion capital seeks us 500 talks dynegy merger continue andrew hill sheila mcnulty financial times 11 26 2001 national post national fp 3 c national post 2001 rights reserved enron corp said yesterday still expecting outside investors inject us 500 million us 1 billion group talks continued avoid financial meltdown energy trading group dynegy inc whose rescue bid houston based rival crucial enron survival spent last week u thanksgiving holiday weekend reviewing enron operations finances dynegy said remained optimistic potential merger completed time frame originally announced six nine months enron fate depends delicate unofficial pact lenders dynegy credit ratings agencies resisted downgrading group debt deal pending pact stays place least us 500 million likely invested enron jp morgan chase citigroup enron key lenders advisers us 500 million sought private equity firms dynegy pulls deal cash infusion could put jeopardy ratings agencies could downgrade debt junk triggering debt repayments across network partnerships balance sheet vehicles linked enron enron confirmed yesterday still seeking additional liquidity new equity investors would discuss identities enron crisis confidence became acute last week shares fell us 4 74 us 9 regulator filing revealed extent group debt burden completion us 1 billion secured credit line jpm chase citigroup postponement us 690 million notes repayment due tomorrow sufficient prop share price bonds also fell levels consistent potential bankruptcy filing slide share price encouraged speculation dynegy preparing renegotiate stock bid worth us 9 3 billion compared enron market value us 3 5 billion people close enron say renegotiation deal would impact energy group finances copyright 2000 dow jones company inc rights reserved india aditya birla eyeing enron stake dabhol 11 26 2001 dow jones international news copyright c 2001 dow jones dow jones newswires 91 11 461 9426 himendra kumar dowjones com copyright 2000 dow jones company inc rights reserved enron scandal v rajwade 11 26 2001 business standard 10 copyright c business standard enron always recognised companies best practice risk management put systems manage risks real time basis strong management james lam founder erisk consulting firm occasional teacher regularly student subject management price risks admirer enron elaborate disclosure risk management practices yet cascade events period three weeks mid october lost two thirds share value became subject us securities exchange commission sec investigation taken rival third size latest reports create doubt whether go went wrong events nothing dabhol indeed us india enron always associated controversial power project elsewhere likely become case study students accounting finance general management second thoughts even indian adventures would make excellent case study first recount happened announcing october 16 without much explanation transparency taken charge 1 2 billion equity enron share price started tumbling apparently charge result financial transactions sec launched investigation chief financial officer cfo directly involved transactions company treasurer couple senior officials sacked perhaps damagingly enron revised accounts 1997 onwards reducing profits 600 million increasing debt somewhat similar amount result enron credit rating downgraded seems root problem basic business power gas trading investment activities controlled cfo comprised private equity enron share investee companies kept artificially 50 per cent avoid consolidation accounts end outside investors brought assured equity enron value investee company ies fall agreed threshold done keep losses investments balance sheet mitigate impact reported profits many us corporations including j p morgan chase large private equity investments suffered score see world money october 15 enron wanted avoid last year paid since dismissed cfo 30 million creative accounting genius incidentally enamoured us gaap alleged superiority rest world note gimmicks blessed company auditors one big five firms paid 25 million audit fees 27 million services enron last year restatement accounts 1997 onwards became necessary enron management board auditors forced review admit least transactions rather balance sheet details transactions question yet come come bad enough apart billion dollar hit company size 300 billion cash flow 3 billion enron hardly death warrant turned enron perhaps arrogant perhaps also accounts lacked transparency opaqueness ensured investors confidence always somewhat fragile two points worth noting professionalism equity analysts whether event restores somewhat balance trading producing first professional analysts surely aware opaqueness accounts questioned management aggressively subject perhaps stock glamorous typified spirit times trading assets masters universe boring old business producing oil power cars enron management proud way operated principal activity trading power gas skilling former ceo claming side angels taking entrenched monopolies bringing benefits choice free markets world quotation interview businessweek prior skilling inglorious exit enron couple weeks bubble burst analysts also safety numbers skilling claimed enron operations built around integration modern financial technologies physical technologies bringing derivatives theory trading power gas obviously fate long term capital management led sober management trading risks surely role markets reduce distance cost producer consumer one feel something perverse society values terms compensation trader forget euphemism speculator producer whether bond currency power gas markets markets indeed greed obviously role play surely pendulum needs swing little bit left copyright 2000 dow jones company inc rights reserved india mehta comments birla group offer buy enron stake 2001 11 26 03 42 new york mumbai nov 26 bloomberg jaywantiben mehta india union minister state power comments reports aditya birla group owns grasim industry ltd nation third biggest cement maker bidding enron stake dabhol power co enron wants sell 65 percent stake dabhol power india biggest foreign investment cost project mired tariff dispute 64 million bills paid maharashtra state electricity board customer eight months one bidder increase competition welcome step national interest good cheap energy always national interest since want increase electricity generation sell reasonable price comment time frame buying enron stake legal wrangles solved cleared try clear proposal quickly gautam chakravorthy mumbai newsroom 91 22 233 9027