enron mentions under the radar : enron ' s only white knight is itself
thestreet . com , 11 / 02 / 01
bandwidth beat : playing ' 20 questions ' with enron execs
dow jones energy service , 11 / 02 / 01
usa : stung californians not crowing at enron ' s troubles .
reuters english news service , 11 / 02 / 01
enron portland genl sale seen going smoothly this time
dow jones energy service , 11 / 02 / 01
nymex / lowers costs - 2 : retroactive to thurs transactions
dow jones commodities service , 11 / 02 / 01
under the radar : enron ' s only white knight is itself
by christopher edmonds
special to thestreet . com
11 / 02 / 2001 03 : 15 pm est
url :
there is no suitor - in - waiting for enron ( ene : nyse - news - commentary ) .
despite a speculation - filled week , warren buffett ' s berkshire hathaway ( brka : nyse - news - commentary ) probably isn ' t waiting in the wings to gobble up the troubled energy giant . the risk profile doesn ' t fit royal dutch shell ( rd : nyse - news - commentary ) , and it ' s unlikely general electric ( ge : nyse - news - commentary ) is ready to jump at the chance to rescue the houston energy firm from its troubles with the sec and disgruntled investors . ? and while the recent slide in enron ' s stock price might seem to make it an attractive target , it ' s implausible that an enron competitor would step up to the plate and make an offer to acquire its troubled peer . ? " we do not believe there is a high probability of a bailout offer at a price significantly above the current price , as there is too much uncertainty about the capital structure and shareholder lawsuits , " says jeff dietert , independent power analyst at simmons & co . , a houston energy investment firm and a member of the tsc energy roundtable . ? many metrics suggest the stock is inexpensive . merrill lynch analyst donato eassey recently calculated enron ' s asset value to be between $ 16 and $ 24 per share , which may make enron ' s current price of less than $ 12 look cheap . but in nearly the same breath , eassey downgraded enron stock to neutral from " accumulate . " merrill lynch has provided banking services for enron . ? " while we have not altered our view of enron ' s fundamentals or its ability to weather this long - term storm , from a practical standpoint we believe noise surrounding the sec ' s move to a formal investigation will outweigh any [ earnings ] analysis or net asset value calculation , " eassey told clients in a report thursday . ? for buffett : intriguing but . . . ? reports that famed value investor warren buffett is looking at enron may be correct . he is an opportunistic investor and has an interest in the power business . and , berkshire ' s ownership of mid - american energy provides a platform for an enron deal . ? however , interest and action are two different things . while buffett has said he wants additional power holdings , he seems more focused on the traditional , regulated utilities rather than the more aggressive opportunities represented by enron . buffett ' s track record shows he craves certainty and that is something enron can ' t provide , especially now . ? there are also pragmatic issues . if enron considered a deal , it would have to be one that was both rich and immediate , something buffett can ' t offer . constrained by the public utility holding company act , or puhca , berkshire might not be able to purchase enron until the sale of portland general , the oregon utility , is completed sometime next year . ? the enron culture could also keep buffett away . enron is well known for its employee stock option program that made millions of dollars for people like ex - ceo jeffrey skilling while creating little value for shareholders . buffett is a tireless critic of such shenanigans . buffett also generally looks for companies with a management team committed to remaining in place , and ken lay has no desire to remain at the helm of enron for the long haul , and future leadership is uncertain . ? and while buffett still may take a look , price could be the ultimate stumbling block . " i think he understands the derivative trading business better than most , " says robert hagstrom , portfolio manager of the legg mason focus trust and author of the essential buffett : timeless principles for the new economy . " i wouldn ' t be surprised if it ' s caught his eye , but i don ' t think he would get his price . he won ' t pay a premium for enron . " ? as for buffett , he won ' t comment on anything , let alone rumors like this . ? shell : burned out on gas ? ? another rumored suitor is royal dutch shell ( rd : nyse - news - commentary ) . speculation has escalated to the point of suggesting that shell and enron have signed a confidentiality agreement to allow for exchange of privileged financial data . ? a shell spokeswoman in london would not comment on the speculation . an enron spokesman also declined to comment . ? shell wants to expand its gas business and in its bid for barrett resources , showed it will pay a premium for the right assets . ? but enron is more an energy trading company than an exploration and production company . shell ' s problems growing both its coral trading subsidiary and its tejas gas unit - - a costly acquisition - - probably would make it shy away from going there again , dietert says . ? shell and enron are very different companies , he adds . " culturally , it ' s a tough deal to imagine . " ? ge capital : enlightened investor ? ? the final name bandied about is ge capital . this one is more difficult to figure , but an investment in enron by the finance unit of general electric isn ' t out of the question . however , sources tell me an outright bid is unlikely . ? " they are a potential investor , " says dietert . " if push comes to shove , enron would be willing to issue 30 % to 40 % more equity rather than face bankruptcy . and , ge capital could participate in such a deal . " ? however , any move is just speculation at this point . and general electric won ' t comment on speculation . ? even if an offer for enron emerged , price would clearly be an issue . current uncertainty suggests any offer would be well below a price enron would consider reasonable . hence , while a bid for enron isn ' t out of the question , it ' s likely enron will stand to fight its current battles alone . ? ? ? bandwidth beat : playing ' 20 questions ' with enron execs ? by michael rieke ? ? 11 / 02 / 2001 ? dow jones energy service ? ( copyright ( c ) 2001 , dow jones 713 - 547 - 9207 ; michael . rieke @ dowjones . com ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ? usa : stung californians not crowing at enron ' s troubles . ? by leonard anderson ? ? 11 / 02 / 2001 ? reuters english news service ? ( c ) reuters limited 2001 . ? ? san francisco , nov 2 ( reuters ) - if there ' s one market that might applaud the mounting financial woes facing energy giant enron corp . , it ' s california , whose power sector was shattered by the market deregulation that enron tirelessly champions . ? last summer , angry californians tossed a pie at enron ex - chief executive jeff skilling during a speech here in which he blamed state regulators for causing the energy crisis . ? california officials , led by governor gray davis , blasted houston - based enron and other out - of - state power companies for creating the emergency , accusing them of manipulating the market and jacking up prices . ? but with enron now facing a credit crunch and a full - scale probe by u . s . regulators into questionable financial dealings , california officials are holding back their harshest criticism , saying instead there are lessons to be learned from enron ' s predicament . ? and some of enron ' s toughest critics , among them davis and loretta lynch , president of the state ' s public utilities commission ( cpuc ) , would not discuss the company ' s woes . ? " you reap what you sow , but i don ' t think anyone wants to pile on them right now , " said a state government source . ? many californians cited ongoing business and creditor links with enron as reasons not to hurl stones at the energy giant . ? enron is by far the nation ' s largest trader of electricity and natural gas , with energy analysts estimating it is involved in some 25 percent of daily trade in those markets . ? transactions on the company ' s widely watched internet - based enrononline trading system are estimated currently to average $ 3 billion to $ 4 billion a day . ? ' business cycles ' ? " business cycles come and go , " said greg pruett , spokesman for san francisco - based energy company pg & e corp . , whose pacific gas & electric unit , california ' s biggest utility , filed for federal bankruptcy protection in april in the wake of the energy mess . ? " we are wrestling with our own situation , and you can appreciate what enron is going through . we have done business with enron for a long time and will continue to do business with them in the future , " pruett said . ? california ' s power agencies , forced into buying emergency electricity for the state earlier this year when the state ' s investor - owned utilities ran out of credit and cash , said they have financial ties with enron . ? " their situation is not ringing alarm bells for us , " said gregg fishman , a spokesman for the independent system operator ( iso ) , which manages the state power grid . ? the iso owes enron money for purchases of daily power supplies but fishman declined to say how much . ? aside from a 30 - day supply contract earlier this year , enron does not have any current power deals with the state ' s department of water resources , said oscar hidalgo , spokesman for the agency which negotiates long - term agreements . ? one top california energy regulator , however , said enron ' s troubles offer an important lesson for energy markets . ? carl wood , a cpuc commissioner , said the deregulation of markets for basic services like electricity " threatens as much financial volatility and instability as we have seen in the telecommunications and the dot - com industries . " ? wood said , " enron is the flagship for deregulation , but there are definite dangers of venturing into unregulated market behavior . enron itself apparently is becoming a victim of sorts . our largest utility is in bankruptcy . one obvious conclusion is to keep the energy industry on a pretty short regulatory leash . " ? " the unregulated energy industry rises faster , but it also falls further , " said doug heller of the foundation for taxpayers and consumer rights , an advocacy group in santa monica , california . ? " it ' s okay for a free market to operate for things like computers and other goods but energy is different . regulatory structures are needed to protect customers , " he said . ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ? enron portland genl sale seen going smoothly this time ? by jessica berthold ? of dow jones newswires ? ? 11 / 02 / 2001 ? dow jones energy service ? ( copyright ( c ) 2001 , dow jones 323 - 658 - 3872 ; jessica . berthold @ dowjones . com ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ? nymex / lowers costs - 2 : retroactive to thurs transactions ? ? 11 / 02 / 2001 ? dow jones commodities service ? ( copyright ( c ) 2001 , dow jones 201 - 938 - 4430 ; andrew . dowell @ dowjones . com ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ?
enron mentions
under the radar : enron ' s only white knight is itself
thestreet . com , 11 / 02 / 01
bandwidth beat : playing ' 20 questions ' with enron execs
dow jones energy service , 11 / 02 / 01
usa : stung californians not crowing at enron ' s troubles .
reuters english news service , 11 / 02 / 01
enron portland genl sale seen going smoothly this time
dow jones energy service , 11 / 02 / 01
nymex / lowers costs - 2 : retroactive to thurs transactions
dow jones commodities service , 11 / 02 / 01
under the radar : enron ' s only white knight is itself
by christopher edmonds
special to thestreet . com
11 / 02 / 2001 03 : 15 pm est
url :
there is no suitor - in - waiting for enron ( ene : nyse - news - commentary ) .
despite a speculation - filled week , warren buffett ' s berkshire hathaway ( brka : nyse - news - commentary ) probably isn ' t waiting in the wings to gobble up the troubled energy giant . the risk profile doesn ' t fit royal dutch shell ( rd : nyse - news - commentary ) , and it ' s unlikely general electric ( ge : nyse - news - commentary ) is ready to jump at the chance to rescue the houston energy firm from its troubles with the sec and disgruntled investors . ? and while the recent slide in enron ' s stock price might seem to make it an attractive target , it ' s implausible that an enron competitor would step up to the plate and make an offer to acquire its troubled peer . ? " we do not believe there is a high probability of a bailout offer at a price significantly above the current price , as there is too much uncertainty about the capital structure and shareholder lawsuits , " says jeff dietert , independent power analyst at simmons & co . , a houston energy investment firm and a member of the tsc energy roundtable . ? many metrics suggest the stock is inexpensive . merrill lynch analyst donato eassey recently calculated enron ' s asset value to be between $ 16 and $ 24 per share , which may make enron ' s current price of less than $ 12 look cheap . but in nearly the same breath , eassey downgraded enron stock to neutral from " accumulate . " merrill lynch has provided banking services for enron . ? " while we have not altered our view of enron ' s fundamentals or its ability to weather this long - term storm , from a practical standpoint we believe noise surrounding the sec ' s move to a formal investigation will outweigh any [ earnings ] analysis or net asset value calculation , " eassey told clients in a report thursday . ? for buffett : intriguing but . . . ? reports that famed value investor warren buffett is looking at enron may be correct . he is an opportunistic investor and has an interest in the power business . and , berkshire ' s ownership of mid - american energy provides a platform for an enron deal . ? however , interest and action are two different things . while buffett has said he wants additional power holdings , he seems more focused on the traditional , regulated utilities rather than the more aggressive opportunities represented by enron . buffett ' s track record shows he craves certainty and that is something enron can ' t provide , especially now . ? there are also pragmatic issues . if enron considered a deal , it would have to be one that was both rich and immediate , something buffett can ' t offer . constrained by the public utility holding company act , or puhca , berkshire might not be able to purchase enron until the sale of portland general , the oregon utility , is completed sometime next year . ? the enron culture could also keep buffett away . enron is well known for its employee stock option program that made millions of dollars for people like ex - ceo jeffrey skilling while creating little value for shareholders . buffett is a tireless critic of such shenanigans . buffett also generally looks for companies with a management team committed to remaining in place , and ken lay has no desire to remain at the helm of enron for the long haul , and future leadership is uncertain . ? and while buffett still may take a look , price could be the ultimate stumbling block . " i think he understands the derivative trading business better than most , " says robert hagstrom , portfolio manager of the legg mason focus trust and author of the essential buffett : timeless principles for the new economy . " i wouldn ' t be surprised if it ' s caught his eye , but i don ' t think he would get his price . he won ' t pay a premium for enron . " ? as for buffett , he won ' t comment on anything , let alone rumors like this . ? shell : burned out on gas ? ? another rumored suitor is royal dutch shell ( rd : nyse - news - commentary ) . speculation has escalated to the point of suggesting that shell and enron have signed a confidentiality agreement to allow for exchange of privileged financial data . ? a shell spokeswoman in london would not comment on the speculation . an enron spokesman also declined to comment . ? shell wants to expand its gas business and in its bid for barrett resources , showed it will pay a premium for the right assets . ? but enron is more an energy trading company than an exploration and production company . shell ' s problems growing both its coral trading subsidiary and its tejas gas unit - - a costly acquisition - - probably would make it shy away from going there again , dietert says . ? shell and enron are very different companies , he adds . " culturally , it ' s a tough deal to imagine . " ? ge capital : enlightened investor ? ? the final name bandied about is ge capital . this one is more difficult to figure , but an investment in enron by the finance unit of general electric isn ' t out of the question . however , sources tell me an outright bid is unlikely . ? " they are a potential investor , " says dietert . " if push comes to shove , enron would be willing to issue 30 % to 40 % more equity rather than face bankruptcy . and , ge capital could participate in such a deal . " ? however , any move is just speculation at this point . and general electric won ' t comment on speculation . ? even if an offer for enron emerged , price would clearly be an issue . current uncertainty suggests any offer would be well below a price enron would consider reasonable . hence , while a bid for enron isn ' t out of the question , it ' s likely enron will stand to fight its current battles alone . ? ? ? bandwidth beat : playing ' 20 questions ' with enron execs ? by michael rieke ? ? 11 / 02 / 2001 ? dow jones energy service ? ( copyright ( c ) 2001 , dow jones 713 - 547 - 9207 ; michael . rieke @ dowjones . com ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ? usa : stung californians not crowing at enron ' s troubles . ? by leonard anderson ? ? 11 / 02 / 2001 ? reuters english news service ? ( c ) reuters limited 2001 . ? ? san francisco , nov 2 ( reuters ) - if there ' s one market that might applaud the mounting financial woes facing energy giant enron corp . , it ' s california , whose power sector was shattered by the market deregulation that enron tirelessly champions . ? last summer , angry californians tossed a pie at enron ex - chief executive jeff skilling during a speech here in which he blamed state regulators for causing the energy crisis . ? california officials , led by governor gray davis , blasted houston - based enron and other out - of - state power companies for creating the emergency , accusing them of manipulating the market and jacking up prices . ? but with enron now facing a credit crunch and a full - scale probe by u . s . regulators into questionable financial dealings , california officials are holding back their harshest criticism , saying instead there are lessons to be learned from enron ' s predicament . ? and some of enron ' s toughest critics , among them davis and loretta lynch , president of the state ' s public utilities commission ( cpuc ) , would not discuss the company ' s woes . ? " you reap what you sow , but i don ' t think anyone wants to pile on them right now , " said a state government source . ? many californians cited ongoing business and creditor links with enron as reasons not to hurl stones at the energy giant . ? enron is by far the nation ' s largest trader of electricity and natural gas , with energy analysts estimating it is involved in some 25 percent of daily trade in those markets . ? transactions on the company ' s widely watched internet - based enrononline trading system are estimated currently to average $ 3 billion to $ 4 billion a day . ? ' business cycles ' ? " business cycles come and go , " said greg pruett , spokesman for san francisco - based energy company pg & e corp . , whose pacific gas & electric unit , california ' s biggest utility , filed for federal bankruptcy protection in april in the wake of the energy mess . ? " we are wrestling with our own situation , and you can appreciate what enron is going through . we have done business with enron for a long time and will continue to do business with them in the future , " pruett said . ? california ' s power agencies , forced into buying emergency electricity for the state earlier this year when the state ' s investor - owned utilities ran out of credit and cash , said they have financial ties with enron . ? " their situation is not ringing alarm bells for us , " said gregg fishman , a spokesman for the independent system operator ( iso ) , which manages the state power grid . ? the iso owes enron money for purchases of daily power supplies but fishman declined to say how much . ? aside from a 30 - day supply contract earlier this year , enron does not have any current power deals with the state ' s department of water resources , said oscar hidalgo , spokesman for the agency which negotiates long - term agreements . ? one top california energy regulator , however , said enron ' s troubles offer an important lesson for energy markets . ? carl wood , a cpuc commissioner , said the deregulation of markets for basic services like electricity " threatens as much financial volatility and instability as we have seen in the telecommunications and the dot - com industries . " ? wood said , " enron is the flagship for deregulation , but there are definite dangers of venturing into unregulated market behavior . enron itself apparently is becoming a victim of sorts . our largest utility is in bankruptcy . one obvious conclusion is to keep the energy industry on a pretty short regulatory leash . " ? " the unregulated energy industry rises faster , but it also falls further , " said doug heller of the foundation for taxpayers and consumer rights , an advocacy group in santa monica , california . ? " it ' s okay for a free market to operate for things like computers and other goods but energy is different . regulatory structures are needed to protect customers , " he said . ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ? enron portland genl sale seen going smoothly this time ? by jessica berthold ? of dow jones newswires ? ? 11 / 02 / 2001 ? dow jones energy service ? ( copyright ( c ) 2001 , dow jones 323 - 658 - 3872 ; jessica . berthold @ dowjones . com ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ? nymex / lowers costs - 2 : retroactive to thurs transactions ? ? 11 / 02 / 2001 ? dow jones commodities service ? ( copyright ( c ) 2001 , dow jones 201 - 938 - 4430 ; andrew . dowell @ dowjones . com ? ? copyright ? 2000 dow jones & company , inc . all rights reserved . ? ?