enron mentions blowback
forbes , 11 - 12 - 01
enron shares rise , rebounding from nine - year low ( updatel )
2001 - 10 - 31 11 : 56 ( new york )
enron shares rise as analysts cite bargain - hunting , financing speculation
dow jones business news , 10 / 31 / 01
enron trades higher after heavy losses
cbs . marketwatch . com , 10 / 31 / 01
usa : u . s . tech stocks up , blue chips shed gains .
reuters english news service , 10 / 31 / 01
us west pwr lower on new - month positions despite gas rise
dow jones energy service , 10 / 31 / 01
uk : enron close to exiting indian lng shipping deal .
reuters english news service , 10 / 31 / 01
mariner energy to sell stake in aconcagua field for $ 51 million
bloomberg , 10 / 31 / 01
blowback
daniel fisher , forbes magazine , 11 . 12 . 01
did enron use partnerships to artificially boost earnings ? lawyers are rubbing their hands .
if the truth sets you free , the top echelon at enron corp . , present and past , should be feeling positively footloose these days . just in time to get shackled by a slew of shareholder suits .
private securities lawyers and the securities & exchange commission are looking into the houston energy trading firm ' s complex relationships with outside partnerships it used to hedge against fluctuations in the value of its investments . where enron sees 21 st - century financial engineering , lawyers see possible earnings inflation . ( chairman kenneth lay says enron is cooperating with the sec inquiry . )
one partnership , run by enron chief financial officer andrew fastow , added $ 236 million in revenue in the first quarter of 2001 , boosting enron ' s $ 425 million in net income in that period . the partnership ' s contribution plunged to $ 5 million in the second quarter ended june 30 , but investors only found out aug . 14 - - when enron filed its quarterly 10 - q with the sec . oddly enough , that was the day chief executive jeffrey skilling unexpectedly resigned .
expect class - action lawyers to go after the profits skilling and other insiders made by selling $ 660 million in stock when shares were flying high . ( they ' re down 78 % from august 2000 . ) since skilling left , enron has taken a $ 1 . 2 billion hit to shareholders ' equity to unwind partnerships .
" they certainly misled the market as to the size of [ partnership losses ] , " says thomas shapiro , one of several lawyers filing shareholder suits against enron . who knows what will emerge from some of the other partnerships ?
enron shares rise , rebounding from nine - year low ( updatel )
2001 - 10 - 31 11 : 56 ( new york )
enron shares rise , rebounding from nine - year low ( updatel )
( adds analyst comment in sixth paragraph . )
houston , oct . 31 ( bloomberg ) - - enron corp . shares rose as
much as 19 percent , one day after falling to their lowest level in
more than nine years , amid speculation the company may be a
takeover target .
shares of the top energy trader rose $ 1 . 58 , or 14 percent , to
$ 12 . 74 in midday trading of 19 . 9 million shares , compared with the
three - month daily average of 10 . 4 million shares . earlier , the
shares hit $ 13 . 25 .
shares of houston - based enron have fallen 84 percent this
year . they have lost more than half their value this month amid a
u . s . securities and exchange commission inquiry into partnerships
headed by andrew fastow , enron ' s former chief financial officer .
fastow was ousted last week in an attempt to restore confidence in
the stock .
` ` there are rumors out there that they are a potential
takeover target , but i think it ' s very unlikely that anyone will
buy them out at this point , ' ' said zach wagner , an analyst at
edward jones & co . ` ` there are too many uncertainties . ' '
enron is more likely to get a large cash infusion from an
investor , wagner said . he has a ` ` reduce ' ' rating on enron shares .
he doesn ' t own the stock .
the wall street journal today said general electric co . ' s ge
capital , warren buffett ' s berkshire hathaway inc . and royal dutch
petroleum co . are ` ` among the names bandied about ' ' as potential
buyers for all or part of enron .
- - margot habiby in the dallas newsroom ( 214 ) 954 - 9452
enron shares rise as analysts cite bargain - hunting , financing speculation
by christina cheddar
10 / 31 / 2001
dow jones business news
( copyright ( c ) 2001 , dow jones & company , inc . )
dow jones newswires
new york - - after losing nearly two - thirds of their value over the past two weeks , enron corp . shares regained some lost ground wednesday .
bargain - hunting and speculation were said to be behind the buying , with some suggesting that enron is nearing a deal for additional financing , while others are said to be mulling the possibility the company may be acquired .
in afternoon trading on new york stock exchange , enron shares ( ene ) were up $ 1 . 49 , or 13 % , to $ 12 . 65 on volume of 24 . 9 million shares . earlier , the stock traded as high as $ 13 . 25 .
enron , which typically trades an average of 10 million shares a day , was again one of the most actively traded stocks on the big board . on tuesday , enron shares set a 52 - week low of $ 10 . 90 , which was the stock ' s lowest level in a decade .
commerzbank securities analyst andre meade attributed the jump in enron ' s stock to investors attracted by its low price . those buyers , he said , are hoping not to be hit by the " double swords " hanging over the houston energy trader - - a securities and exchange commission investigation of the financial dealings of its former chief financial officer andrew fastow , with an off - balance sheet financing vehicle and the possibility of another credit - rating downgrade by moody ' s , which could trigger the need to issue additional stock and thereby dilute the holdings of existing investors .
in addition , there is speculation " through the houston circuit " that enron may be close to securing additional financing , said prudential securities analyst carol coale . if the speculation proves true , the financing would help enron to shore up its financial condition and improve confidence among investors as well as its business partners .
investors also may be placing their bets on the belief that enron shares have eroded enough in value to make the company a takeover candidate .
a report in the wall street journal wednesday said several companies including general electric co . ' s ( ge ) ge capital unit , warren buffett ' s berkshire hathaway inc . ( brka , brkb ) and royal dutch / shell group ( rd ) have been named as potential buyers for enron .
ms . coale said the takeover speculation was " unwarranted " and has surfaced each time enron shares faltered .
" it would be very unusual . . . for a company to be interested in a takeover ( of enron ) given the uncertainty of the sec inquiry . why add that uncertainty to your portfolio ? " she said .
furthermore , ms . coale said , it might be difficult for a company such as shell to clear regulatory hurdles because it already operates a substantial energy trading business .
commerzbank ' s mr . meade also discounted the takeover speculation . he likened such a deal to the acquisition of a financial - service company .
" you are buying a human - capital - based business . you have to make sure you ' re not going to loose all your people , " he said . " it ' s a trickier acquisition . "
but not everyone thinks the takeover speculation is implausible . roger hamilton , an analyst at john hancock value funds , said shell and enron are " neighbors " , and shell has looked at enron " on and off . "
still , he said that if there is a buyer for enron , the company would want to do it sooner rather than later in order not to risk damaging enron ' s leading market position .
some marketwatchers said at least some of the pressure on enron shares in recent trading sessions has come from mutual funds liquidating their positions to avoid having the company ' s name appear among their holdings in their annual reports .
despite the rise in enron shares wednesday , there remains a significant amount of uncertainty about the stock .
in addition to the pending sec inquiry and the lingering credit concerns , attention also is being paid to their effect on enron ' s trading business . while several trading counterparties have said that they are watching the situation closely , at least one , entergy corp . ( etr ) , is said to be trimming its exposure to enron .
the new york mercantile exchange also plans to use enron ' s weakness to recapture part of the over - the - counter energy derivative market by offering its own clearing services and trading tools for the natural gas market .
write to christina cheddar at christina . cheddar @ dowjones . com
copyright ( c ) 2001 dow jones & company , inc .
all rights reserved .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron trades higher after heavy losses
by lisa sanders , cbs . marketwatch . com
last update : 1 : 27 pm et oct . 31 , 2001
houston ( cbs . mw ) - - shares of enron , which had lost about 66 percent of their value over the past 10 sessions , spiked in wednesday trading after a report that pegged the beleaguered company as a takeover target .
enron ( ene : news , chart , profile ) added 13 percent , or $ 1 . 46 , to $ 12 . 62 in recent dealings . volume was heavy at 25 million shares .
john olson , an analyst at sanders morris harris in houston , pointed out that the heavy losses enron sustained over the last 10 sessions partly reflects the end of the tax year for mutual funds . the calendar year for funds ends at the close of business wednesday .
" mutual funds who own enron stock have been trying to offset other gains by selling off enron , " he said . " mutual funds have to register all their gains or losses and offset them by selling or buying stock by the close today . "
a wall street journal report wednesday speculated on enron ' s potential as an acquisition for a more stable company . enron has been under pressure for more than two weeks , beginning when the energy merchant reported a $ 1 billion charge in its third - quarter earnings . a securities and exchange commission probe into two of the company ' s limited partnerships and a rating downgrade by moody ' s investors service haven ' t helped .
olson said he thought an enron takeover unlikely at this point .
" however , if the stock were to keep coming down , and their financial difficulties were extended , the odds would increase , " he said .
art smith , chairman and chief executive of the research firm john s . herold , said he ' d be surprised if enron was not entertaining offers . " it ' s one of the ways that enron gets the genie back in the bottle . "
on the other hand , smith said , it would take a potential acquirer time to become comfortable with the valuation of the business .
" it ' s doubtful that a potential acquirer can resolve all the valuation issues quickly , " smith said . he said it ' s likely that any sort of purchase agreement would contain what he called a " look - back provision , " which would protect the acquirer from being strapped to a fixed value .
smith said he could see either general electric ' s ( ge : news , chart , profile ) ge capital or royal dutch shell ( rd : news , chart , profile ) making a bid . both were mentioned in the journal report .
" ge capital is big enough that if it didn ' t work out it won ' t cripple ge , and they ' ve been opportunistic on things like this , " smith said . " and shell always keeps us guessing . "
olson also included aig ( aig : news , chart , profile ) and citigroup ( c : news , chart , profile ) as potential acquirers .
" enron has certainly had some appeal to people that are used to an aggressive trading culture , " he said .
smith said that even without enron , the energy marketing and trading business would continue to thrive .
" even if enron went away , it would not change what has developed into a healthy market for commodity forward markets and hedging , " he said .
lisa sanders is a dallas - based reporter for cbs . marketwatch . com .
usa : u . s . tech stocks up , blue chips shed gains .
by haitham haddadin
10 / 31 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , oct 31 ( reuters ) - technology stocks held gains in early afternoon trading on wednesday after the u . s . economy shrank less than wall street feared in the third quarter , but blue chips dipped as an early rally faded on worries the worst is yet to come .
" you will need a lot of fortitude to see the mountaintop when we are in the depths of the valley , " said jay mueller , economist and portfolio manager at strong capital management inc . , which oversees $ 42 billion .
the economy suffered its worst contraction since the first quarter of 1991 , the government said in its " advance " or early estimate of gross domestic product . gdp , the broadest measure of u . s . economic health , shrank 0 . 4 percent in the third quarter . the number still managed to beat economists ' projected 1 percent drop and helped spark an early rally .
wall street still faces a heavy economic calendar this week and is girding for readings on the manufacturing sector and job market . some economists expect the u . s . economy will give an even worse performance in the fourth quarter as the sept . 11 attacks haunt the nation .
the technology - laced nasdaq composite index advanced 28 . 65 points , or 1 . 72 percent , to 1 , 696 . 06 , after snagging a gain of more than 3 percent earlier in the day . sun microsystems inc . jumped 77 cents to $ 10 . 31 , or 8 percent , after the network computer maker said orders were tracking higher this quarter than they were this time last quarter .
the dow jones industrial average was off 6 . 23 points , or 0 . 07 percent , at 9 , 115 . 75 , after climbing more than 1 percent . eastman kodak co . , down $ 2 . 69 to $ 25 . 11 , or 9 . 7 percent , pressured the blue - chip gauge after moody ' s cut its debt rating and warned it may lower the long - term rating again amid falling profits .
the broader standard & poor ' s 500 index rose 4 . 03 points , or 0 . 38 percent , at 1 , 063 . 82 . the stock market had sold off in the last two days after rallying last week .
wall street widely expects the economy to slip into a recession . but investors are hoping more tax cuts and lower interest rates will lift the economy by 2002 . president george w . bush urged congress to pass a stimulus package by the end of november in a speech at the white house .
most economists expect the economic contraction to last at least to the end of the year and if it does , the third quarter would mark the start of the first u . s . recession in 10 years . a recession is loosely defined as at least two straight quarters of falling gdp .
in other economic news , the national association of purchasing management - chicago said its october index slipped to 46 . 2 from 46 . 6 in september , but this beat economists ' estimates of a drop to 43 . 0 .
the october index that showed less weakness than expected suggests regional manufacturing could bottom fairly soon , but does not necessarily mean thursday ' s national survey by napm will follow suit , analysts said .
" what it ' s showing is that the economy , although it ' s slowing now , is slowing at a gradual pace as opposed to rapidly plunging off a cliff , " said john herrmann , chief economist at ideaglobal . " we think the napm index falls a little bit more than this because napm will capture corporations in new york and outside the region of chicago . "
the october national association of purchasing management ( napm ) index , due shortly after the open on thursday , is forecast on average slipping to 44 . 3 from 47 . 0 in september .
intel corp . , a dow member and nasdaq heavyweight , added 63 cents to $ 24 . 17 , or 2 . 6 percent . the world ' s largest chip maker sounded a bullish note for long - term growth , saying the billions it ' s spending this year will yield profits and market share gains once the high - tech recession abates and growth resumes .
motorola inc . rose 51 cents to $ 16 . 65 , or more than 3 percent , after the wireless giant said its global market share rose in the july - september quarter from the second quarter , boosted by sales of new products .
adobe systems inc . fell $ 3 . 41 to $ 25 . 34 , or nearly 12 percent . the publishing software vendor said it would cut 150 jobs , or 5 percent of its work force , and lowered its revenue and earnings guidance , citing weakening business after the sept . 11 attacks .
enron corp . rose $ 1 . 47 to $ 12 . 63 , bouncing back from 10 consecutive days of losses . the wall street journal said on wednesday in its influential " heard on the street " column that with enron trading at book value , some wall streeters see the beleaguered energy trader as a takeover target . enron shares on tuesday dropped 19 percent to hit 1992 levels amid fears of a credit crunch and concerns over management reluctance to discuss its finances .
copyright ? 2000 dow jones & company , inc . all rights reserved .
us west pwr lower on new - month positions despite gas rise
10 / 31 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones 201 - 938 - 4604 ; mark . golden @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : enron close to exiting indian lng shipping deal .
10 / 31 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , oct 31 ( reuters ) - u . s . energy major enron corp is close to exiting a joint shipping venture linked to its troubled dabhol power plant in india , shipping sources said .
" enron has pulled out of the lakshmi ( the ship ) and has dumped it on its partners in the deal , mitsui osk lines and the shipping corporation of india , " said one shipping executive .
" essentially it ' s linked to the collapse of the dabhol deal , " he added .
enron has a 65 percent stake , valued at $ 1 billion , in the dabhol power plant , which has been stalled by a long - running payment dispute with its only customer , a local utility .
" we have been in discussions about greenfield shipping ( the ship owning company ) , but at the moment it is not appropriate to comment on future plans , " said a spokesman for enron in houston .
the shipping source said the ship had been contracted at the above - market price of $ 223 million from mhi yard in japan , and would need the high charter rate of $ 92 , 000 per day to cover its costs . this would be difficult to acheive .
enron said the ship had been financed through 70 percent debt and 30 percent equity , in which it had a 20 percent stake .
copyright ? 2000 dow jones & company , inc . all rights reserved .
mariner energy to sell stake in aconcagua field for $ 51 million
2001 - 10 - 31 11 : 47 ( new york )
mariner energy to sell stake in aconcagua field for $ 51 million
houston , oct . 31 ( bloomberg ) - - mariner energy inc . , an oil
and gas exploration company , expects to tomorrow complete the sale
of its stake in the aconcagua field and canyon express pipeline
system for $ 51 million to nippon oil exploration ltd . and pioneer
natural resources co .
the aconcagua field , about 150 miles southeast of new
orleans , is one of three deepwater natural gas fields being
developed as part of the canyon express pipeline .
houston - based mariner is majority owned by an affiliate of
enron corp .
nippon oil exploration is a unit of nippon mitsubishi oil
corp . , japan ' s largest oil refiner .
shares of irving , texas - based pioneer natural resources rose
4 cents to $ 17 . 10 in midday trading .
- - amy hellickson in princeton ( 609 ) 750 - 4549 or at
enron mentions
blowback
forbes , 11 - 12 - 01
enron shares rise , rebounding from nine - year low ( updatel )
2001 - 10 - 31 11 : 56 ( new york )
enron shares rise as analysts cite bargain - hunting , financing speculation
dow jones business news , 10 / 31 / 01
enron trades higher after heavy losses
cbs . marketwatch . com , 10 / 31 / 01
usa : u . s . tech stocks up , blue chips shed gains .
reuters english news service , 10 / 31 / 01
us west pwr lower on new - month positions despite gas rise
dow jones energy service , 10 / 31 / 01
uk : enron close to exiting indian lng shipping deal .
reuters english news service , 10 / 31 / 01
mariner energy to sell stake in aconcagua field for $ 51 million
bloomberg , 10 / 31 / 01
blowback
daniel fisher , forbes magazine , 11 . 12 . 01
did enron use partnerships to artificially boost earnings ? lawyers are rubbing their hands .
if the truth sets you free , the top echelon at enron corp . , present and past , should be feeling positively footloose these days . just in time to get shackled by a slew of shareholder suits .
private securities lawyers and the securities & exchange commission are looking into the houston energy trading firm ' s complex relationships with outside partnerships it used to hedge against fluctuations in the value of its investments . where enron sees 21 st - century financial engineering , lawyers see possible earnings inflation . ( chairman kenneth lay says enron is cooperating with the sec inquiry . )
one partnership , run by enron chief financial officer andrew fastow , added $ 236 million in revenue in the first quarter of 2001 , boosting enron ' s $ 425 million in net income in that period . the partnership ' s contribution plunged to $ 5 million in the second quarter ended june 30 , but investors only found out aug . 14 - - when enron filed its quarterly 10 - q with the sec . oddly enough , that was the day chief executive jeffrey skilling unexpectedly resigned .
expect class - action lawyers to go after the profits skilling and other insiders made by selling $ 660 million in stock when shares were flying high . ( they ' re down 78 % from august 2000 . ) since skilling left , enron has taken a $ 1 . 2 billion hit to shareholders ' equity to unwind partnerships .
" they certainly misled the market as to the size of [ partnership losses ] , " says thomas shapiro , one of several lawyers filing shareholder suits against enron . who knows what will emerge from some of the other partnerships ?
enron shares rise , rebounding from nine - year low ( updatel )
2001 - 10 - 31 11 : 56 ( new york )
enron shares rise , rebounding from nine - year low ( updatel )
( adds analyst comment in sixth paragraph . )
houston , oct . 31 ( bloomberg ) - - enron corp . shares rose as
much as 19 percent , one day after falling to their lowest level in
more than nine years , amid speculation the company may be a
takeover target .
shares of the top energy trader rose $ 1 . 58 , or 14 percent , to
$ 12 . 74 in midday trading of 19 . 9 million shares , compared with the
three - month daily average of 10 . 4 million shares . earlier , the
shares hit $ 13 . 25 .
shares of houston - based enron have fallen 84 percent this
year . they have lost more than half their value this month amid a
u . s . securities and exchange commission inquiry into partnerships
headed by andrew fastow , enron ' s former chief financial officer .
fastow was ousted last week in an attempt to restore confidence in
the stock .
` ` there are rumors out there that they are a potential
takeover target , but i think it ' s very unlikely that anyone will
buy them out at this point , ' ' said zach wagner , an analyst at
edward jones & co . ` ` there are too many uncertainties . ' '
enron is more likely to get a large cash infusion from an
investor , wagner said . he has a ` ` reduce ' ' rating on enron shares .
he doesn ' t own the stock .
the wall street journal today said general electric co . ' s ge
capital , warren buffett ' s berkshire hathaway inc . and royal dutch
petroleum co . are ` ` among the names bandied about ' ' as potential
buyers for all or part of enron .
- - margot habiby in the dallas newsroom ( 214 ) 954 - 9452
enron shares rise as analysts cite bargain - hunting , financing speculation
by christina cheddar
10 / 31 / 2001
dow jones business news
( copyright ( c ) 2001 , dow jones & company , inc . )
dow jones newswires
new york - - after losing nearly two - thirds of their value over the past two weeks , enron corp . shares regained some lost ground wednesday .
bargain - hunting and speculation were said to be behind the buying , with some suggesting that enron is nearing a deal for additional financing , while others are said to be mulling the possibility the company may be acquired .
in afternoon trading on new york stock exchange , enron shares ( ene ) were up $ 1 . 49 , or 13 % , to $ 12 . 65 on volume of 24 . 9 million shares . earlier , the stock traded as high as $ 13 . 25 .
enron , which typically trades an average of 10 million shares a day , was again one of the most actively traded stocks on the big board . on tuesday , enron shares set a 52 - week low of $ 10 . 90 , which was the stock ' s lowest level in a decade .
commerzbank securities analyst andre meade attributed the jump in enron ' s stock to investors attracted by its low price . those buyers , he said , are hoping not to be hit by the " double swords " hanging over the houston energy trader - - a securities and exchange commission investigation of the financial dealings of its former chief financial officer andrew fastow , with an off - balance sheet financing vehicle and the possibility of another credit - rating downgrade by moody ' s , which could trigger the need to issue additional stock and thereby dilute the holdings of existing investors .
in addition , there is speculation " through the houston circuit " that enron may be close to securing additional financing , said prudential securities analyst carol coale . if the speculation proves true , the financing would help enron to shore up its financial condition and improve confidence among investors as well as its business partners .
investors also may be placing their bets on the belief that enron shares have eroded enough in value to make the company a takeover candidate .
a report in the wall street journal wednesday said several companies including general electric co . ' s ( ge ) ge capital unit , warren buffett ' s berkshire hathaway inc . ( brka , brkb ) and royal dutch / shell group ( rd ) have been named as potential buyers for enron .
ms . coale said the takeover speculation was " unwarranted " and has surfaced each time enron shares faltered .
" it would be very unusual . . . for a company to be interested in a takeover ( of enron ) given the uncertainty of the sec inquiry . why add that uncertainty to your portfolio ? " she said .
furthermore , ms . coale said , it might be difficult for a company such as shell to clear regulatory hurdles because it already operates a substantial energy trading business .
commerzbank ' s mr . meade also discounted the takeover speculation . he likened such a deal to the acquisition of a financial - service company .
" you are buying a human - capital - based business . you have to make sure you ' re not going to loose all your people , " he said . " it ' s a trickier acquisition . "
but not everyone thinks the takeover speculation is implausible . roger hamilton , an analyst at john hancock value funds , said shell and enron are " neighbors " , and shell has looked at enron " on and off . "
still , he said that if there is a buyer for enron , the company would want to do it sooner rather than later in order not to risk damaging enron ' s leading market position .
some marketwatchers said at least some of the pressure on enron shares in recent trading sessions has come from mutual funds liquidating their positions to avoid having the company ' s name appear among their holdings in their annual reports .
despite the rise in enron shares wednesday , there remains a significant amount of uncertainty about the stock .
in addition to the pending sec inquiry and the lingering credit concerns , attention also is being paid to their effect on enron ' s trading business . while several trading counterparties have said that they are watching the situation closely , at least one , entergy corp . ( etr ) , is said to be trimming its exposure to enron .
the new york mercantile exchange also plans to use enron ' s weakness to recapture part of the over - the - counter energy derivative market by offering its own clearing services and trading tools for the natural gas market .
write to christina cheddar at christina . cheddar @ dowjones . com
copyright ( c ) 2001 dow jones & company , inc .
all rights reserved .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron trades higher after heavy losses
by lisa sanders , cbs . marketwatch . com
last update : 1 : 27 pm et oct . 31 , 2001
houston ( cbs . mw ) - - shares of enron , which had lost about 66 percent of their value over the past 10 sessions , spiked in wednesday trading after a report that pegged the beleaguered company as a takeover target .
enron ( ene : news , chart , profile ) added 13 percent , or $ 1 . 46 , to $ 12 . 62 in recent dealings . volume was heavy at 25 million shares .
john olson , an analyst at sanders morris harris in houston , pointed out that the heavy losses enron sustained over the last 10 sessions partly reflects the end of the tax year for mutual funds . the calendar year for funds ends at the close of business wednesday .
" mutual funds who own enron stock have been trying to offset other gains by selling off enron , " he said . " mutual funds have to register all their gains or losses and offset them by selling or buying stock by the close today . "
a wall street journal report wednesday speculated on enron ' s potential as an acquisition for a more stable company . enron has been under pressure for more than two weeks , beginning when the energy merchant reported a $ 1 billion charge in its third - quarter earnings . a securities and exchange commission probe into two of the company ' s limited partnerships and a rating downgrade by moody ' s investors service haven ' t helped .
olson said he thought an enron takeover unlikely at this point .
" however , if the stock were to keep coming down , and their financial difficulties were extended , the odds would increase , " he said .
art smith , chairman and chief executive of the research firm john s . herold , said he ' d be surprised if enron was not entertaining offers . " it ' s one of the ways that enron gets the genie back in the bottle . "
on the other hand , smith said , it would take a potential acquirer time to become comfortable with the valuation of the business .
" it ' s doubtful that a potential acquirer can resolve all the valuation issues quickly , " smith said . he said it ' s likely that any sort of purchase agreement would contain what he called a " look - back provision , " which would protect the acquirer from being strapped to a fixed value .
smith said he could see either general electric ' s ( ge : news , chart , profile ) ge capital or royal dutch shell ( rd : news , chart , profile ) making a bid . both were mentioned in the journal report .
" ge capital is big enough that if it didn ' t work out it won ' t cripple ge , and they ' ve been opportunistic on things like this , " smith said . " and shell always keeps us guessing . "
olson also included aig ( aig : news , chart , profile ) and citigroup ( c : news , chart , profile ) as potential acquirers .
" enron has certainly had some appeal to people that are used to an aggressive trading culture , " he said .
smith said that even without enron , the energy marketing and trading business would continue to thrive .
" even if enron went away , it would not change what has developed into a healthy market for commodity forward markets and hedging , " he said .
lisa sanders is a dallas - based reporter for cbs . marketwatch . com .
usa : u . s . tech stocks up , blue chips shed gains .
by haitham haddadin
10 / 31 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , oct 31 ( reuters ) - technology stocks held gains in early afternoon trading on wednesday after the u . s . economy shrank less than wall street feared in the third quarter , but blue chips dipped as an early rally faded on worries the worst is yet to come .
" you will need a lot of fortitude to see the mountaintop when we are in the depths of the valley , " said jay mueller , economist and portfolio manager at strong capital management inc . , which oversees $ 42 billion .
the economy suffered its worst contraction since the first quarter of 1991 , the government said in its " advance " or early estimate of gross domestic product . gdp , the broadest measure of u . s . economic health , shrank 0 . 4 percent in the third quarter . the number still managed to beat economists ' projected 1 percent drop and helped spark an early rally .
wall street still faces a heavy economic calendar this week and is girding for readings on the manufacturing sector and job market . some economists expect the u . s . economy will give an even worse performance in the fourth quarter as the sept . 11 attacks haunt the nation .
the technology - laced nasdaq composite index advanced 28 . 65 points , or 1 . 72 percent , to 1 , 696 . 06 , after snagging a gain of more than 3 percent earlier in the day . sun microsystems inc . jumped 77 cents to $ 10 . 31 , or 8 percent , after the network computer maker said orders were tracking higher this quarter than they were this time last quarter .
the dow jones industrial average was off 6 . 23 points , or 0 . 07 percent , at 9 , 115 . 75 , after climbing more than 1 percent . eastman kodak co . , down $ 2 . 69 to $ 25 . 11 , or 9 . 7 percent , pressured the blue - chip gauge after moody ' s cut its debt rating and warned it may lower the long - term rating again amid falling profits .
the broader standard & poor ' s 500 index rose 4 . 03 points , or 0 . 38 percent , at 1 , 063 . 82 . the stock market had sold off in the last two days after rallying last week .
wall street widely expects the economy to slip into a recession . but investors are hoping more tax cuts and lower interest rates will lift the economy by 2002 . president george w . bush urged congress to pass a stimulus package by the end of november in a speech at the white house .
most economists expect the economic contraction to last at least to the end of the year and if it does , the third quarter would mark the start of the first u . s . recession in 10 years . a recession is loosely defined as at least two straight quarters of falling gdp .
in other economic news , the national association of purchasing management - chicago said its october index slipped to 46 . 2 from 46 . 6 in september , but this beat economists ' estimates of a drop to 43 . 0 .
the october index that showed less weakness than expected suggests regional manufacturing could bottom fairly soon , but does not necessarily mean thursday ' s national survey by napm will follow suit , analysts said .
" what it ' s showing is that the economy , although it ' s slowing now , is slowing at a gradual pace as opposed to rapidly plunging off a cliff , " said john herrmann , chief economist at ideaglobal . " we think the napm index falls a little bit more than this because napm will capture corporations in new york and outside the region of chicago . "
the october national association of purchasing management ( napm ) index , due shortly after the open on thursday , is forecast on average slipping to 44 . 3 from 47 . 0 in september .
intel corp . , a dow member and nasdaq heavyweight , added 63 cents to $ 24 . 17 , or 2 . 6 percent . the world ' s largest chip maker sounded a bullish note for long - term growth , saying the billions it ' s spending this year will yield profits and market share gains once the high - tech recession abates and growth resumes .
motorola inc . rose 51 cents to $ 16 . 65 , or more than 3 percent , after the wireless giant said its global market share rose in the july - september quarter from the second quarter , boosted by sales of new products .
adobe systems inc . fell $ 3 . 41 to $ 25 . 34 , or nearly 12 percent . the publishing software vendor said it would cut 150 jobs , or 5 percent of its work force , and lowered its revenue and earnings guidance , citing weakening business after the sept . 11 attacks .
enron corp . rose $ 1 . 47 to $ 12 . 63 , bouncing back from 10 consecutive days of losses . the wall street journal said on wednesday in its influential " heard on the street " column that with enron trading at book value , some wall streeters see the beleaguered energy trader as a takeover target . enron shares on tuesday dropped 19 percent to hit 1992 levels amid fears of a credit crunch and concerns over management reluctance to discuss its finances .
copyright ? 2000 dow jones & company , inc . all rights reserved .
us west pwr lower on new - month positions despite gas rise
10 / 31 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones 201 - 938 - 4604 ; mark . golden @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : enron close to exiting indian lng shipping deal .
10 / 31 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , oct 31 ( reuters ) - u . s . energy major enron corp is close to exiting a joint shipping venture linked to its troubled dabhol power plant in india , shipping sources said .
" enron has pulled out of the lakshmi ( the ship ) and has dumped it on its partners in the deal , mitsui osk lines and the shipping corporation of india , " said one shipping executive .
" essentially it ' s linked to the collapse of the dabhol deal , " he added .
enron has a 65 percent stake , valued at $ 1 billion , in the dabhol power plant , which has been stalled by a long - running payment dispute with its only customer , a local utility .
" we have been in discussions about greenfield shipping ( the ship owning company ) , but at the moment it is not appropriate to comment on future plans , " said a spokesman for enron in houston .
the shipping source said the ship had been contracted at the above - market price of $ 223 million from mhi yard in japan , and would need the high charter rate of $ 92 , 000 per day to cover its costs . this would be difficult to acheive .
enron said the ship had been financed through 70 percent debt and 30 percent equity , in which it had a 20 percent stake .
copyright ? 2000 dow jones & company , inc . all rights reserved .
mariner energy to sell stake in aconcagua field for $ 51 million
2001 - 10 - 31 11 : 47 ( new york )
mariner energy to sell stake in aconcagua field for $ 51 million
houston , oct . 31 ( bloomberg ) - - mariner energy inc . , an oil
and gas exploration company , expects to tomorrow complete the sale
of its stake in the aconcagua field and canyon express pipeline
system for $ 51 million to nippon oil exploration ltd . and pioneer
natural resources co .
the aconcagua field , about 150 miles southeast of new
orleans , is one of three deepwater natural gas fields being
developed as part of the canyon express pipeline .
houston - based mariner is majority owned by an affiliate of
enron corp .
nippon oil exploration is a unit of nippon mitsubishi oil
corp . , japan ' s largest oil refiner .
shares of irving , texas - based pioneer natural resources rose
4 cents to $ 17 . 10 in midday trading .
- - amy hellickson in princeton ( 609 ) 750 - 4549 or at