enron mentions - 11 / 21 / 01 dynegy issues statement on enron merger status
business wire , 11 / 21 / 01
enron says repayment of 690 mln usd debt extended until mid - dec
afx news , 11 / 21 / 01
usa : enron secures credit line as shares fall .
reuters english news service , 11 / 21 / 01
enron stock free - fall continues
associated press newswires , 11 / 21 / 01
enron closes on $ 450 m secured credit line
dow jones news service , 11 / 21 / 01
usa : update 1 - enron shares fall further on credit concerns .
reuters english news service , 11 / 21 / 01
usa : enron shares tumble on credit concerns .
reuters english news service , 11 / 21 / 01
upgrades and downgrades
cnnfn : market coverage - morning , 11 / 21 / 01
usa : research alert - enron , dynegy cut by goldman .
reuters english news service , 11 / 21 / 01
enron gets extension on $ 690 mln note due next week ( updatel )
bloomberg , 11 / 21 / 01
enron , dynegy shares fall 2 nd day on threat to buyout ( update 2 )
bloomberg , 11 / 21 / 01
u . s . equity movers : cardiac science , enron , guidant , triquint
bloomberg , 11 / 21 / 01
enron , dynegy shares fall 2 nd day on threat to dynegy bid
bloomberg , 11 / 21 / 01
enron corp . cut to ` market perform ' at goldman sachs
bloomberg , 11 / 21 / 01
enron says lenders extend $ 690 mln note payment to mid - december
bloomberg , 11 / 21 / 01
plunge says end is near at enron
thestreet . com , 11 / 21 / 01
dynegy , enron say merger to proceed
cbs . marketwatch . com , 11 / 21 / 01
dynegy issues statement on enron merger status
11 / 21 / 2001
business wire
( copyright ( c ) 2001 , business wire )
houston - - ( business wire ) - - nov . 21 , 2001 - - dynegy inc . ( nyse : dyn ) chairman and ceo chuck watson today said he is encouraged by enron corp . ' s report this morning that it has closed the remaining $ 450 million credit facility secured by the assets of northern natural gas pipeline and has received a commitment from its lead bank to extend the $ 690 million note payable obligation described in enron ' s recent 10 - q filing .
" we are continuing our confirmatory due diligence and working to accelerate the regulatory approvals required to complete the merger in accordance with the previously announced agreement , " he said .
watson also noted that chevrontexaco recently reiterated that it has " full confidence in dynegy ' s disciplined management approach to complete the merger and to build a new company into an industry leader . " chevrontexaco owns 26 percent of dynegy ' s outstanding common stock .
dynegy inc . is one of the world ' s top energy merchants . through its global energy delivery network and marketing , trading and risk management capabilities , dynegy provides innovative solutions to customers in north america , the united kingdom and continental europe .
certain statements included in this news release are intended as " forward - looking statements " under the private securities litigation reform act of 1995 . these statements include assumptions , expectations , predictions , intentions or beliefs about future events . dynegy cautions that actual future results may vary materially from those expressed or implied in any forward - looking statements . some of the key factors that could cause actual results to vary from those dynegy expects include changes in commodity prices for energy or communications products or services ; the timing and extent of deregulation of energy markets in the u . s . and europe ; the timing of required approvals for the dynegy / enron merger and the success of integration and cost savings measures relating to the merger ; the effectiveness of dynegy ' s risk management policies and procedures and the creditworthiness of customers and counterparties ; the liquidity and competitiveness of wholesale trading markets for energy commodities , including the impact of electronic or online trading in these markets ; operational factors affecting dynegy ' s power generation or dynegy ' s midstream natural gas facilities ; uncertainties regarding the development of , and competition within , the market for communications services in the u . s . and europe ; uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting dynegy ' s business ; general political , economic and financial market conditions ; and any extended period of war or conflict involving the united states or europe . moreover , dynegy ' s expectation that the acquisition will be accretive to earnings in 2002 and beyond is based upon achieving certain sales projections , meeting certain cost targets and successfully integrating the acquired assets . more information about the risks and uncertainties relating to these forward - looking statements are found in dynegy ' s sec filings , which are available free of charge on the sec ' s web site at http : / / www . sec . gov .
contact : dynegy inc . , houston 713 / 767 - 5800
13 : 26 est november 21 , 2001
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron says repayment of 690 mln usd debt extended until mid - dec
11 / 21 / 2001
afx news
( c ) 2001 by afp - extel news ltd
houston ( afx ) - enron corp said its creditor banks have granted an extension on a 690 mln usd note payable by nov 27 until mid - december , giving it enough time to restructure the debt .
in a statement , the troubled energy company said the extension has been agreed following talks with its main creditor banks on restructuring its debt to avoid a liquidity crisis .
" we have been in continuous contact with our banks and believe we can identify a mutually beneficial restructuring to enhance our cash position , strengthen our balance sheet and address upcoming maturities , " said chief financial officer jeffrey mcmahon .
enron first informed investors of the possibility it would be forced to repay the 690 mln usd note in a filing to the securities and exchange commission on monday .
the obligation arose after standard & poor ' s cut the company ' s long - term debt rating to bbb - last week , forcing it to either post collateral on the note or repay it on maturity .
enron said it has also secured the remaining 450 mln usd of a previously announced 1 bln usd credit line from jp morgan and salomon smith barney . the facility is secured by the assets of enron ' s northern natural gas co unit .
the other 550 mln usd are secured by the assets of its transwestern pipeline co .
enron also said it is still committed to its merger with dynegy inc , announced on nov 9 .
" we continue to believe that this merger is in the best interests of our shareholders , employees , and lenders , " said chairman and chief executive kenneth lay . " it offers the opportunity to create a formidable player in the merchant energy business with substantial growth prospects and a strong financial position . "
jp morgan chase vice chairman james lee said the bank will work with enron and its other creditor banks " to develop a plan to strengthen enron ' s financial position up to and through its merger with dynegy " , which is expected to close in the third quarter of 2002 .
cl / gc for more information and to contact afx : www . afxnews . com and www . afxpress . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : enron secures credit line as shares fall .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - enron corp . said on wednesday it secured the remaining $ 450 million of its $ 1 billion credit line and reaffirmed its commitment to an agreement to be taken over by rival dynegy inc .
facing a crisis of confidence , enron said it is in active talks with its other lenders to restructure its debt obligation and had pushed back the deadline for repaying a $ 690 million loan obligation to mid - december .
" we continue to believe that this merger is in the best interests of our shareholders , employees , and lenders , " enron chairman and chief executive ken lay said in a statement .
enron shares were down 28 percent after noon on wednesday , after being down 33 percent earlier in the day . its shares fell about 23 percent on tuesday amid concerns over its liquidity and growing questions over whether the proposed takeover by dynegy would go ahead .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron stock free - fall continues
11 / 21 / 2001
associated press newswires
copyright 2001 . the associated press . all rights reserved .
houston ( ap ) - shares of embattled enron corp . plunged another 32 percent wednesday morning as analysts and investors continued to doubt the once - mighty energy trader ' s ability to recover lost business and investor confidence .
in a report released wednesday , goldman sachs & co . analyst david fleischer became the latest to question enron ' s future , saying that an sec filing by the houston - based company earlier this week " raised new issues about liquidity and the ability of the company to even finance itself over the next several months . "
analysts are also questioning whether dynegy inc . ' s planned dlrs 8 . 9 billion acquisition of enron will survive given the latest revelations .
documents filed with the securities and exchange commission by enron late monday restated the company ' s third - quarter earnings and stated that it may have to repay a dlrs 690 million debt by next week because of decreased credit ratings .
the filing also noted that enron ' s financial woes have led to a " reduced level of transaction activity " with the company by trading partners .
enron shares fell 23 percent tuesday , then dropped another dlrs 2 . 25 , or 32 percent , to dlrs 4 . 74 wednesday in extremely heavy trading on the new york stock exchange .
fleischer said enron ' s nov . 16 cash balance of dlrs 1 . 2 billion is inadequate to meet remaining debt obligations .
fleischer acknowledged , however , enron ' s efforts to renegotiate next week ' s due date for the dlrs 690 million debt , which was triggered nov . 12 when the company ' s credit rating was downgraded to bbb - , saying that there are indications that enron ' s banks may be willing to roll current maturities over and even make new equity investments .
michelle foss , director of the energy institute at the university of houston , said this latest round of troubles had to raise concerns about whether the dynegy - enron deal will be pulled off .
" it doesn ' t look like it ' s going to be able to happen , " foss said . " it did look like a decent idea when they proposed the merger , but today i ' m sure they ' ll look at it and see if they can salvage their attempt to buy enron . "
shares of dynegy were off dlrs 2 . 55 to dlrs 39 . 15 in trading on the nyse .
- - -
tobacco suits by venezuela , brazil ' s espirito santo dropped
miami ( ap ) - health care cost - recovery lawsuits against major u . s . cigarette makers by venezuela and the brazilian state of espirito santo have been dismissed .
" this is another important reminder to american plaintiffs ' lawyers that a state court won ' t ignore the overwhelming number of decisions by federal courts rejecting these lawsuits , " william s . ohlemeyer , philip morris cos . vice president , said tuesday after the decisions .
attorneys for several foreign governments have filed an assortment of lawsuits in u . s . federal and state courts in an attempt to find some legal mechanism that withstands judicial scrutiny .
russia and other brazilian states are among the foreign governments that have sued in miami , where a verdict of dlrs 145 billion was awarded to florida smokers against the five biggest u . s . cigarette makers .
ecuador ' s suit in miami was withdrawn earlier when another state judge announced his intention to dismiss it .
- - - -
general motors of canada inks supplier agreement with quebec rubber plants
eds : dollar figures are canadian .
montreal ( ap ) - general motors of canada has signed supplier agreements with a quebec auto - parts maker that helped create about 800 jobs , news reports said wednesday .
the deal with saar - gummi automotive group in magog , quebec , is part of general motors ' commitment to offset the jobs that will be lost when it shuts down its car assembly factory in boisbriand , quebec , next year , killing 1 , 400 jobs .
gm did not reveal the value of the contracts , but german - based saar - gummi said tuesday it has made a dlrs 40 million investment in its seven magog plants , doubling its workforce to 1 , 600 employees from 800 since last summer .
the factories make molded rubber parts for cars , such as the rubber strips and molding found along the doors of vehicles . most of the production is sold to gm , and goes into 56 gm plants in canada , the united states and mexico .
the products will be used in several models including the chevrolet avalanche , gmc envoy , saturn vue and cadillacs .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron closes on $ 450 m secured credit line
11 / 21 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones & company , inc . )
houston - ( dow jones ) - enron co . ( ene ) closed on the remaining $ 450 million of a previously announced $ 1 billion in secured credit lines and said it is in active discussions to restructure its debt to improve liquidity .
in a press release wednesday , enron said the $ 450 million credit facility is secured by the assets of enron ' s northern natural gas co .
a $ 550 million credit facility , secured by the assets of enron ' s transwestern pipeline co . , closed nov . 16 . the proceeds are being used to supplement short - term liquidity and to refinance maturing obligations .
the company said it was informed by the lead bank on the facility that the maturity on its $ 690 million note payable obligation will be extended to mid - december . enron expects the extension to be finalized shortly .
dow jones corporate filings alert reported monday that enron is currently preparing a restructuring plan aimed at taking aggressive steps to rationalize the company ' s existing cost structure , accelerating the process of divesting noncore businesses and assets and restructuring scheduled maturities of debt and other obligations .
enron ' s credit lines are from j . p . morgan , the investment - banking arm of j . p . morgan chase dow jones newswires ; 201 - 938 - 5400
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : update 1 - enron shares fall further on credit concerns .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - enron corp . shares tumbled 33 percent in early trading on wednesday , following a 22 . 8 percent drop on tuesday , amid concerns over the company ' s liquidity and growing questions over whether the proposed takeover by dynegy will go ahead .
enron ' s shares were down $ 2 . 29 to $ 4 . 70 in early trading on the new york stock exchange . the stock was the biggest loser by percentage and the most active stock on the nyse .
" the dynegy deal will take a long time and a lot of things could happen over that time period . dynegy did their homework , but if they missed anything , they have a number of exit opportunities , " said fulcrum global partners analyst michael barbis .
dynegy was not immediately available for comment .
wall street analysts said enron is losing market share because of credit concerns from its trading partners and questions over dynegy inc . ' s takeover offer . enron warned on monday it could be forced to pay by next week a $ 690 million debt triggered by a credit downgrade last week .
" enron is definitely losing market share on credit concerns . cash needs to run the buisness have now increased . the market perceives enron as needing more cash , " said barbis .
on monday , enron disclosed it is up against a deadline of nov . 26 to deliver collateral against the debt owed to a third party in one of its many partnerships .
if not , the partner has the right to liquidate all of the assets of the partnership , which include a brazilian natural gas company that enron was counting on selling to raise $ 250 million in cash .
enron is working to make alternative payment arrangements , since it can ill - afford to pay the debt now . enron has already already maxed out its $ 3 billion credit line , secured roughly $ 2 billion in loans and is looking for more cash to stay afloat .
on monday , the houston - based company also reduced previously reported 2001 third - quarter earnings by 3 cents per share and increased reported earnings for the first 9 months of the year by a penny per share .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : enron shares tumble on credit concerns .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - enron corp . shares tumbled 19 percent in opening trade on wednesday , amid concerns over the company ' s liquidity and growing questions over whether the proposed takeover by dynegy will go ahead .
shares were down $ 1 . 33 to $ 5 . 66 in early trading on the new york stock exchange .
wall street analysts said enron is losing market share because of credit concerns from its trading partners and questions over dynegy inc . ' s takeover offer . enron warned on monday it could be forced to pay by next week a $ 690 million debt triggered by a credit downgrade last week .
" the dynegy deal will take a long time and a lot of things could happen over that time period . dynegy did their homework , but if they missed anything , they have a number of exit opportunities , " said fulcrum global partners analyst michael barbis .
copyright ? 2000 dow jones enron ( url : http : / / . www . enron . com / ) , dynegy ( url : http : / / www . dynegy . com / ) and williams ( url : http : / / www . williamsenergy . com / ) , from the recommended list .
dynegy was expected to buy the troubled enron . it is still , but it ` s rated market perform now as is enron . williams rated market outperform . goldman says it ` s concerned about enron ` s ability to recover from the loss of significant business deals and sees no positive catalysts for the entire group largely due to the problems in enron .
on the upside , deutsche bank is raising xerox ( url : http : / / www . xerox . com / ) to buy from market perform saying it ` s pleased with the company ` s turnaround strategy . we ` re going to talk about that in detail when we speak with the analyst who made that call in just a moment .
first , we want to take a look at how these stocks are trading . entire group is down with the exception of xerox . it ` s up 15 cents .
peter ausnit is imaging analyst at deutsche bank alex . brown and joins us .
and thanks for joining us here on market call . what is it about xerox you like ?
peter ausnit , imaging analyst , deutsche bank alex . brown : well i think the company ` s really put its liquidity concerns behind it and now investors can look at the long - term picture , which is much brighter .
charles kadlec , j & w seligman : peter , it ` s chuck kadlec . good morning . is this is a heroic recommendation here ? is this - should we consider this more of a speculative investment or is this something that a conservative investor ought to be interested in ?
ausnit : i think investors should be interested in this if , over the next several quarters - in the near - term , the conditions are still quite difficult but over the long - term it ` s not that speculative . xerox has a large install base , a tremendous sales and service force and can probably return to industry standard margins .
kadlec : as you say , this probably depends on management ` s ability to execute here . why do you believe this management is going to be able to execute their strategy ?
ausnit : well their track records during the turnaround has been fairly strong and the strategy has made a lot of sense . they ` ve sold a lot of businesses . they ` ve done most of the things they promised to do such as bring on new third party equipment financing and they ` re going to bring on a new cfo as well .
schaffler : peter ausnit of deutsche bank alex . brown , thanks for joining us .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : research alert - enron , dynegy cut by goldman .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - goldman sachs said on wednesday it removed merger partners enron corp . and dynegy inc . from its " recommended list " and downgraded the stocks to " market perform . "
goldman said it cut enron ' s 2001 earnings estimate to $ 1 . 35 a share , and cut the 2002 estimate to 50 cents a share amid concerns about " new and major " liquidity issues , and the company ' s ability to recover the business that has been lost .
the firm said the cash infusion from dynegy " appears inadequate to restore the confidence of enron customers . "
it said dynegy and williams cos inc . have " excellent long - term prospects , " but valuations throughout the sector may be under pressure until enron ' s issues are resolved .
shares of enron closed at $ 6 . 99 on tuesday , while dynegy closed at $ 41 . 70 . shares of williams closed at $ 29 . 26 .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron gets extension on $ 690 mln note due next week ( updatel )
2001 - 11 - 21 12 : 38 ( new york )
enron gets extension on $ 690 mln note due next week ( updatel )
( updates with amount of debt in fourth paragraph . )
houston , nov . 21 ( bloomberg ) - - enron corp . , whose shares had
dropped 92 percent this year amid a financial crisis , said lenders
extended to mid - december the payment date on a $ 690 million note
due next week .
enron , which agreed to be bought out by rival energy trader
dynegy inc . in a transaction now valued at more than $ 23 billion ,
said earlier this week a drop in its credit rating may force it to
repay the $ 690 million note . the repayment would strain cash
reserves enron needs to back its trading operations , investors and
analysts said .
the houston - based company didn ' t say in its release who holds
the note , which is owed by an affiliated partnership that owns
brazilian natural - gas assets and was backed by enron .
the note is held by a group of banks led by the citibank unit
of citigroup inc . , standard & poor ' s said in a press release
yesterday .
enron also is in discussions with other lenders on a
restructuring of its debt , the company said in a statement
distributed by pr newswire .
` ` we believe the interests of chase and enron ' s other primary
lenders are aligned in this restructuring effort , ' ' james lee ,
vice president of jp morgan chase & co . , said in the enron
statement . ` ` we will work with enron and its other primary lenders
to develop a plan to strengthen enron ' s financial position up to
and through its merger with dynegy . ' ' morgan has been advising
enron on its merger with dynegy .
enron said yesterday it may have to pay $ 9 . 15 billion in debt
due by 2003 , suggesting the company may run out of cash before the
merger closes . dynegy has said the merger should close before the
end of the third quarter of 2002 .
enron said in a regulatory filing that it has less than $ 2
billion in cash or credit lines .
shares of enron , the most active stock in u . s . trading , fell
$ 1 . 79 , or 23 percent , to $ 5 . 20 in midday trading . before the
announcement that it had renegotiated the $ 690 million note , its
shares had fallen as much as 42 . 78 percent , the lowest level in
more than a decade .
dynegy fell $ 2 . 50 , or 6 percent , to $ 39 . 20 . shares of
chevrontexaco corp . , which owns 26 percent of dynegy , rose 49
cents to $ 87 . 02
enron , dynegy shares fall 2 nd day on threat to buyout ( update 2 )
2001 - 11 - 21 11 : 49 ( new york )
enron , dynegy shares fall 2 nd day on threat to buyout ( update 2 )
( adds analyst comment in fourth paragraph . )
houston , nov . 21 , ( bloomberg ) - - shares of enron corp . , the
biggest energy trader , and dynegy inc . fell for a second day on
concern enron may run out of cash before its takeover by dynegy
can be completed .
enron tumbled as much as 33 percent , and dynegy dropped as
much as 6 . 7 percent . enron ' s bonds also fell . the company ' s 6 . 4
percent notes maturing in july 2006 were bid at 62 cents and
offered at 66 cents , traders said . they sold at about 72 cents
yesterday .
institutional investors sold shares of both companies after
goldman , sachs & co . analyst david fleischer downgraded them to
` ` market perform ' ' from his ` ` recommend ' ' list , other analysts
said .
the dynegy bid ` ` did not eliminate customer concerns about
enron ' s liquidity and long - term viability , ' ' goldman sachs said
in its report . ` ` we now believe that it will be difficult for
enron shares to generate strong returns until it is clear that
enron can operate on a normal basis without having to provide
cash or letters of credit to back routine transactions . ' '
fleischer also cut his 2002 profit estimate for enron to 50
cents from $ 1 . 35 . enron had been expected to make $ 1 . 90 next
year , the average estimate of 16 analysts surveyed by thomson
financial / first call .
enron said monday it may have to pay $ 9 . 15 billion in debt
due by 2003 , suggesting the houston - based energy trader may run
out of cash . the company said in a regulatory filing it has less
than $ 2 billion in cash or credit lines .
it also surprised some investors by saying a drop in its
credit rating may force it to repay a $ 690 million note next
week . enron said yesterday the terms of the notes , which it
guaranteed for an affiliated partnership that owns brazilian
natural - gas assets , are being renegotiated and that it had a
` ` verbal indications ' ' that the maturity of the notes will be
extended .
the company ' s dealings with affiliated partnerships led to
earnings restatements , credit - rating cuts , a federal
investigation and a management shakeup . dynegy plans to complete
its buyout by october , and enron may have to ask lenders to
restructure payment schedules .
mirant corp . , aquila inc . and other big energy traders are
doing fewer transactions with enron as concerns increase about
its credit rating and ability to finance daily business ,
executives said yesterday .
enron ' s stock fell $ 2 . 28 , or 32 percent , to $ 4 . 71 in
late - morning trading . earlier , it touched $ 4 . 67 , its lowest price
in more than a decade . the shares have plummeted 92 percent this
year . dynegy fell $ 2 . 70 , or 6 . 5 percent , to $ 39 . 00 . the shares
had dropped 26 percent this year .
u . s . equity movers : cardiac science , enron , guidant , triquint
2001 - 11 - 21 10 : 24 ( new york )
u . s . equity movers : cardiac science , enron , guidant , triquint
new york , nov . 21 ( bloomberg ) - - the following is a list of
companies whose shares are moving in u . s . markets wednesday , nov .
21 . the stock symbol is in parentheses after the company name .
major moving stocks :
enron corp . ( ene ) fell $ 1 . 54 , or 22 percent , to $ 5 . 45 and
traded as low as $ 5 . 44 . the energy trader shares fell for a second
day on concern enron may run out of cash before its takeover by
dynegy inc . ( dyn ) can be completed .
other moving stocks :
cardiac science inc . ( dfib ) rose 51 cents , or 16 percent , to
$ 3 . 65 and traded as high as $ 3 . 89 . the maker of equipment used to
restore a normal heartbeat to patients in cardiac arrest said the
san diego city council approved an agreement for the company to
deploy automated external defibrillators in the region . the
company made the announcement in a press release distributed by pr
newswire . officials couldn ' t immediately be reached to comment .
guidant corp . ( gdt ) rose $ 4 . 18 , or 8 . 9 percent , to $ 51 and
traded as high as $ 51 . 50 . the maker of products to treat heart
disease said a study showed implantable defibrillators cut deaths
by 30 percent in heart - attack survivors , potentially expanding the
$ 1 . 9 billion market for the product .
portal software inc . ( prsf ) fell 34 cents , or 15 percent , to
$ 1 . 89 and traded as low as $ 1 . 64 . the provider of internet - billing
programs said in a release distributed by business wire that it
forecasts a loss of 9 cents to 10 cents a share in the fourth
quarter ending jan . 31 . the company is expected to lose 11 cents ,
the average estimate of analysts surveyed by first call . officials
couldn ' t be reached to comment .
triquint semiconductor inc . ( tqnt ) fell $ 1 . 99 , or 10 percent ,
to $ 17 . 56 and traded as low as $ 17 . 35 . the communications -
equipment chipmaker said it would report fourth - and first - quarter
results at the low end of previous forecasts . triquint was cut to
` ` neutral ' ' from ` ` buy ' ' in a report by u . s . bancorp piper jaffray
cos . analyst samuel may .
tickers : ene dfib gdt tqnt
money flows , the difference between the value of trades made
at a higher price than the previous trade and those made at a
lower price , may also appear for some stocks . these inflows and
outflows show whether people are willing to pay more for a stock
that ' s rising , or to sell a stock that ' s falling for less . if not
it ' s a signal the share price may soon change direction .
enron , dynegy shares fall 2 nd day on threat to dynegy bid
2001 - 11 - 21 09 : 57 ( new york )
enron , dynegy shares fall 2 nd day on threat to dynegy bid
houston , nov . 21 , ( bloomberg ) - - shares in enron corp . and
dynegy inc . fell for a second day on concern enron may run out of
cash before its takeover by dynegy can be completed .
enron fell $ 1 . 37 , or 20 percent to $ 5 . 62 in early trading .
dynegy fell $ 1 . 95 , or 4 . 7 percent , to $ 39 . 75 .
enron bonds extended declines . the company ' s 6 . 4 percent
notes maturing in july 2006 were bid at 60 cents and offered at 68
cents , traders said . they traded at about 72 cents yesterday .
enron corp . cut to ` market perform ' at goldman sachs
2001 - 11 - 21 08 : 46 ( new york )
princeton , new jersey , nov . 21 ( bloomberg data ) - - enron corp . ( ene us )
was downgraded to ` ` market perform ' ' from ` ` recommend list ' ' by analyst david
n fleischer at goldman , sachs & co .
earnings estimates : period previous estimate new estimate
per share ( usd ) fy 2001 1 . 80 1 . 35
fy 2002 2 . 15 0 . 50
enron says lenders extend $ 690 mln note payment to mid - december
2001 - 11 - 21 12 : 10 ( new york )
enron says lenders extend $ 690 mln note payment to mid - december
houston , nov . 21 ( bloomberg ) - - enron corp . said its lenders
extended to mid - december the payment date on a $ 690 million note ,
giving the debt - laden energy trader more time to restructure its
finances .
enron said it ' s still committed to a takeover by dynegy inc .
the company said it secured the remaining $ 450 million of a
previously announced $ 1 billion credit line .
enron shares pared losses after the announcement of the debt
extension . the stock fell $ 1 . 54 , or 22 percent , to $ 5 . 45 in midday
trading .
plunge says end is near at enron
by peter eavis
senior columnist
11 / 21 / 2001 12 : 32 pm est
enron ( ene : nyse - news - commentary - research - analysis ) shares plunged a second straight day wednesday as fear mounted that the struggling energy trader ' s bailout merger plan will unravel .
a potentially lethal cash crunch appears to be gripping enron , even though its planned acquirer dynegy ( dyn : nyse - news - commentary - research - analysis ) has injected $ 1 . 5 billion of cash , and banks have opened new credit lines . an enron collapse would cause weeks of dislocation in the energy markets that would damage other energy traders , and it would cause big losses for the houston company ' s creditors .
just before noon est , enron announced in a press release that it had extended to mid - december a $ 690 million obligation that was due next week . it also said that it had agreed with its bankers to draw down the remaining $ 450 million of a previously announced $ 1 billion secured credit line that has j . p . morgan chase as its lead banker .
investors have been fleeing enron since the company last month disclosed a $ 1 . 2 billion writedown to unwind some related - party hedging transactions . the securities and exchange commission is probing enron deals with related parties . the october disclosure made investors uneasy because it suggested the company hadn ' t been forthcoming about the true state of its finances , and it showed that enron was facing serious liquidity problems .
those fears were temporarily quieted earlier this month when enron agreed to be acquired by smaller rival dynegy . but enron ' s disclosure monday that it faces additional earnings and financing troubles renewed the rush to the exits . in the wednesday release , enron ceo ken lay said his company was still committed to the merger : " we continue to believe that this merger is in the best interests of our shareholders , employees and lenders . " dynegy later issued a press release indicating it is " continuing our confirmatory due diligence " regarding the merger . neither enron nor dynegy returned calls seeking comment .
after plunging 23 % tuesday to $ 6 . 99 , enron was down a staggering 34 % at one point wednesday . it moved slightly higher after the midday press release to trade at $ 4 . 90 . enron shares have lost more than 80 % of their value since the company issued its third - quarter earnings release last month . dynegy dropped $ 2 . 44 , to $ 39 . 26 , though it remains substantially above premerger levels .
at the heart of enron ' s trouble is the sense that the company isn ' t letting on the full extent of its troubles . the selloff in enron shares began in earnest oct . 16 , when the company disclosed in an earnings conference call that it would take a $ 1 . 2 billion writedown to unwind some related - party transactions . critics of the company said those deals , in which the company did business with separate entities involving enron managers , raised serious ethical and disclosure issues .
the dynegy merger was taken as a vote of confidence for enron , since as a big trading partner dynegy would appear to have a solid grasp of enron ' s situation . as a result , shares in both companies rallied after the deal ' s announcement . but monday ' s disclosure that enron faced $ 690 million in bond payments next week reignited worries that the company faced steeper challenges than it has detailed . according to a merrill lynch report cited in the new york times wednesday , dynegy wasn ' t aware of the $ 690 million obligation . critics of the deal wondered whether enron had told dynegy about all its obligations .
liquidity fears have also been rekindled by information contained in a filing of quarterly results that show the company consumed as much as $ 5 billion of cash in recent weeks . by the end of 2002 , enron has to find around $ 9 billion to pay back various obligations . it had $ 1 . 2 billion in cash on hand as of nov . 16 , according to the filing .
tellingly , dynegy shares haven ' t plunged along with enron , suggesting that investors see a collapse of the merger as catastrophic for enron but not for dynegy . at current levels , enron shares are trading at more than a 50 % discount to the dynegy offer .
j . p . morgan has taken a leading role in helping enron . it has lent funds and it helped restructure the $ 690 million obligation . the bank ' s stock was down 78 cents to $ 38 . 62 . " we will work with enron and its other primary lenders to develop a plan to strengthen enron ' s financial position up to and through its merger with dynegy , " said james lee , a top banker at morgan , in the enron release .
from cbs . marketwatch . com , online at :
dynegy , enron say merger to proceed
by myra p . saefong
1 : 52 pm et nov 21 , 2001
washington ( cbs . mw ) - - merger partners enron and dynegy restated their
commitment wednesday to completing a deal , on the heels of embattled
enron ' s announcement that its lead lender granted it more time to pay
off a $ 690 million note set to come due next week .
" we are continuing our confirmatory due diligence and working to
accelerate the regulatory approvals required to complete the merger , "
said chuck watson , dynegy ' s chairman and chief executive , in a
statement .
shares of enron ( ene ) recovered slightly in afternoon trading but
remained under pressure .
on heavy volume , the stock - - which had touched $ 4 earlier in the
session - - was down $ 1 . 83 to trade at $ 5 . 16 , a new 10 - year low . some 84
million shares had changed hands .
enron declined 23 percent tuesday after the company revealed the
upcoming debt deadline and restated its earnings .
meanwhile , dynegy shares lost $ 1 . 83 to stand at $ 39 . 87 .
enron said that the lead bank on the $ 690 million debt agreed to extend
the maturity date to mid - december , which will give the company time to
restructure the facility , and added it expects to further restructure
its debt .
" we . . . believe we can identify a mutually beneficial restructuring to
enhance our cash position , strengthen our balance sheet , and address
upcoming maturities , " said jeff mcmahon , chief financial officer , in a
statement .
j . p . morgan chase co . said it and other lenders are committed to
helping enron improve its financial position .
also , enron reaffirmed its commitment to a merger with dynegy and said
it closed on a previously announced $ 450 million line of credit from
j . p . morgan , collateralized by the company ' s northern natural gas co .
enron - - which is being acquired by its smaller rival dynegy ( dyn ) at a
fire - sale price - - revealed in a securities and exchange commission
filing monday that it had to pay off or refinance $ 690 million in debt
obligations by next monday or risk triggering nearly $ 4 billion in
additional payments .
if enron had missed that deadline and didn ' t post collateral , investors
had the right to demand immediate liquidation of the assets of one of
enron ' s limited partnerships , the unusual business entities at the
center of the company ' s murky transactions currently under
investigation .
the sec filing of monday also contained yet another restatement of
financial results on the heels of a similar filing that disclosed more
than four years of restated earnings figures .
earlier wednesday , goldman sachs lowered its rating on enron ' s stock to
" market performer " from its " u . s . recommended list , " citing " major "
liquidity issues and concerns over whether the company can recover the
business it has lost .
cibc world markets also cut enron to a " hold " from a " buy . "
commerzbank weighed in wednesday , saying enron ' s viability is in doubt .
" we believe the filing clearly shows that enron remains in a precarious
financial position and its status as a going concern is much in doubt , "
analysts andre meade and andrew smith wrote . " it appears that enron ' s
situation could worsen in a number of ways . "
though enron ' s most recent disclosures shed more light on the fiscal
situation , meade and smith characterized the information as " piecemeal . "
" it appears that the full extent of enron ' s problems is not currently
known , " they said in a note , cautioning clients against investing in
enron .
enron mentions - 11 / 21 / 01
dynegy issues statement on enron merger status
business wire , 11 / 21 / 01
enron says repayment of 690 mln usd debt extended until mid - dec
afx news , 11 / 21 / 01
usa : enron secures credit line as shares fall .
reuters english news service , 11 / 21 / 01
enron stock free - fall continues
associated press newswires , 11 / 21 / 01
enron closes on $ 450 m secured credit line
dow jones news service , 11 / 21 / 01
usa : update 1 - enron shares fall further on credit concerns .
reuters english news service , 11 / 21 / 01
usa : enron shares tumble on credit concerns .
reuters english news service , 11 / 21 / 01
upgrades and downgrades
cnnfn : market coverage - morning , 11 / 21 / 01
usa : research alert - enron , dynegy cut by goldman .
reuters english news service , 11 / 21 / 01
enron gets extension on $ 690 mln note due next week ( updatel )
bloomberg , 11 / 21 / 01
enron , dynegy shares fall 2 nd day on threat to buyout ( update 2 )
bloomberg , 11 / 21 / 01
u . s . equity movers : cardiac science , enron , guidant , triquint
bloomberg , 11 / 21 / 01
enron , dynegy shares fall 2 nd day on threat to dynegy bid
bloomberg , 11 / 21 / 01
enron corp . cut to ` market perform ' at goldman sachs
bloomberg , 11 / 21 / 01
enron says lenders extend $ 690 mln note payment to mid - december
bloomberg , 11 / 21 / 01
plunge says end is near at enron
thestreet . com , 11 / 21 / 01
dynegy , enron say merger to proceed
cbs . marketwatch . com , 11 / 21 / 01
dynegy issues statement on enron merger status
11 / 21 / 2001
business wire
( copyright ( c ) 2001 , business wire )
houston - - ( business wire ) - - nov . 21 , 2001 - - dynegy inc . ( nyse : dyn ) chairman and ceo chuck watson today said he is encouraged by enron corp . ' s report this morning that it has closed the remaining $ 450 million credit facility secured by the assets of northern natural gas pipeline and has received a commitment from its lead bank to extend the $ 690 million note payable obligation described in enron ' s recent 10 - q filing .
" we are continuing our confirmatory due diligence and working to accelerate the regulatory approvals required to complete the merger in accordance with the previously announced agreement , " he said .
watson also noted that chevrontexaco recently reiterated that it has " full confidence in dynegy ' s disciplined management approach to complete the merger and to build a new company into an industry leader . " chevrontexaco owns 26 percent of dynegy ' s outstanding common stock .
dynegy inc . is one of the world ' s top energy merchants . through its global energy delivery network and marketing , trading and risk management capabilities , dynegy provides innovative solutions to customers in north america , the united kingdom and continental europe .
certain statements included in this news release are intended as " forward - looking statements " under the private securities litigation reform act of 1995 . these statements include assumptions , expectations , predictions , intentions or beliefs about future events . dynegy cautions that actual future results may vary materially from those expressed or implied in any forward - looking statements . some of the key factors that could cause actual results to vary from those dynegy expects include changes in commodity prices for energy or communications products or services ; the timing and extent of deregulation of energy markets in the u . s . and europe ; the timing of required approvals for the dynegy / enron merger and the success of integration and cost savings measures relating to the merger ; the effectiveness of dynegy ' s risk management policies and procedures and the creditworthiness of customers and counterparties ; the liquidity and competitiveness of wholesale trading markets for energy commodities , including the impact of electronic or online trading in these markets ; operational factors affecting dynegy ' s power generation or dynegy ' s midstream natural gas facilities ; uncertainties regarding the development of , and competition within , the market for communications services in the u . s . and europe ; uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting dynegy ' s business ; general political , economic and financial market conditions ; and any extended period of war or conflict involving the united states or europe . moreover , dynegy ' s expectation that the acquisition will be accretive to earnings in 2002 and beyond is based upon achieving certain sales projections , meeting certain cost targets and successfully integrating the acquired assets . more information about the risks and uncertainties relating to these forward - looking statements are found in dynegy ' s sec filings , which are available free of charge on the sec ' s web site at http : / / www . sec . gov .
contact : dynegy inc . , houston 713 / 767 - 5800
13 : 26 est november 21 , 2001
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron says repayment of 690 mln usd debt extended until mid - dec
11 / 21 / 2001
afx news
( c ) 2001 by afp - extel news ltd
houston ( afx ) - enron corp said its creditor banks have granted an extension on a 690 mln usd note payable by nov 27 until mid - december , giving it enough time to restructure the debt .
in a statement , the troubled energy company said the extension has been agreed following talks with its main creditor banks on restructuring its debt to avoid a liquidity crisis .
" we have been in continuous contact with our banks and believe we can identify a mutually beneficial restructuring to enhance our cash position , strengthen our balance sheet and address upcoming maturities , " said chief financial officer jeffrey mcmahon .
enron first informed investors of the possibility it would be forced to repay the 690 mln usd note in a filing to the securities and exchange commission on monday .
the obligation arose after standard & poor ' s cut the company ' s long - term debt rating to bbb - last week , forcing it to either post collateral on the note or repay it on maturity .
enron said it has also secured the remaining 450 mln usd of a previously announced 1 bln usd credit line from jp morgan and salomon smith barney . the facility is secured by the assets of enron ' s northern natural gas co unit .
the other 550 mln usd are secured by the assets of its transwestern pipeline co .
enron also said it is still committed to its merger with dynegy inc , announced on nov 9 .
" we continue to believe that this merger is in the best interests of our shareholders , employees , and lenders , " said chairman and chief executive kenneth lay . " it offers the opportunity to create a formidable player in the merchant energy business with substantial growth prospects and a strong financial position . "
jp morgan chase vice chairman james lee said the bank will work with enron and its other creditor banks " to develop a plan to strengthen enron ' s financial position up to and through its merger with dynegy " , which is expected to close in the third quarter of 2002 .
cl / gc for more information and to contact afx : www . afxnews . com and www . afxpress . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : enron secures credit line as shares fall .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - enron corp . said on wednesday it secured the remaining $ 450 million of its $ 1 billion credit line and reaffirmed its commitment to an agreement to be taken over by rival dynegy inc .
facing a crisis of confidence , enron said it is in active talks with its other lenders to restructure its debt obligation and had pushed back the deadline for repaying a $ 690 million loan obligation to mid - december .
" we continue to believe that this merger is in the best interests of our shareholders , employees , and lenders , " enron chairman and chief executive ken lay said in a statement .
enron shares were down 28 percent after noon on wednesday , after being down 33 percent earlier in the day . its shares fell about 23 percent on tuesday amid concerns over its liquidity and growing questions over whether the proposed takeover by dynegy would go ahead .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron stock free - fall continues
11 / 21 / 2001
associated press newswires
copyright 2001 . the associated press . all rights reserved .
houston ( ap ) - shares of embattled enron corp . plunged another 32 percent wednesday morning as analysts and investors continued to doubt the once - mighty energy trader ' s ability to recover lost business and investor confidence .
in a report released wednesday , goldman sachs & co . analyst david fleischer became the latest to question enron ' s future , saying that an sec filing by the houston - based company earlier this week " raised new issues about liquidity and the ability of the company to even finance itself over the next several months . "
analysts are also questioning whether dynegy inc . ' s planned dlrs 8 . 9 billion acquisition of enron will survive given the latest revelations .
documents filed with the securities and exchange commission by enron late monday restated the company ' s third - quarter earnings and stated that it may have to repay a dlrs 690 million debt by next week because of decreased credit ratings .
the filing also noted that enron ' s financial woes have led to a " reduced level of transaction activity " with the company by trading partners .
enron shares fell 23 percent tuesday , then dropped another dlrs 2 . 25 , or 32 percent , to dlrs 4 . 74 wednesday in extremely heavy trading on the new york stock exchange .
fleischer said enron ' s nov . 16 cash balance of dlrs 1 . 2 billion is inadequate to meet remaining debt obligations .
fleischer acknowledged , however , enron ' s efforts to renegotiate next week ' s due date for the dlrs 690 million debt , which was triggered nov . 12 when the company ' s credit rating was downgraded to bbb - , saying that there are indications that enron ' s banks may be willing to roll current maturities over and even make new equity investments .
michelle foss , director of the energy institute at the university of houston , said this latest round of troubles had to raise concerns about whether the dynegy - enron deal will be pulled off .
" it doesn ' t look like it ' s going to be able to happen , " foss said . " it did look like a decent idea when they proposed the merger , but today i ' m sure they ' ll look at it and see if they can salvage their attempt to buy enron . "
shares of dynegy were off dlrs 2 . 55 to dlrs 39 . 15 in trading on the nyse .
- - -
tobacco suits by venezuela , brazil ' s espirito santo dropped
miami ( ap ) - health care cost - recovery lawsuits against major u . s . cigarette makers by venezuela and the brazilian state of espirito santo have been dismissed .
" this is another important reminder to american plaintiffs ' lawyers that a state court won ' t ignore the overwhelming number of decisions by federal courts rejecting these lawsuits , " william s . ohlemeyer , philip morris cos . vice president , said tuesday after the decisions .
attorneys for several foreign governments have filed an assortment of lawsuits in u . s . federal and state courts in an attempt to find some legal mechanism that withstands judicial scrutiny .
russia and other brazilian states are among the foreign governments that have sued in miami , where a verdict of dlrs 145 billion was awarded to florida smokers against the five biggest u . s . cigarette makers .
ecuador ' s suit in miami was withdrawn earlier when another state judge announced his intention to dismiss it .
- - - -
general motors of canada inks supplier agreement with quebec rubber plants
eds : dollar figures are canadian .
montreal ( ap ) - general motors of canada has signed supplier agreements with a quebec auto - parts maker that helped create about 800 jobs , news reports said wednesday .
the deal with saar - gummi automotive group in magog , quebec , is part of general motors ' commitment to offset the jobs that will be lost when it shuts down its car assembly factory in boisbriand , quebec , next year , killing 1 , 400 jobs .
gm did not reveal the value of the contracts , but german - based saar - gummi said tuesday it has made a dlrs 40 million investment in its seven magog plants , doubling its workforce to 1 , 600 employees from 800 since last summer .
the factories make molded rubber parts for cars , such as the rubber strips and molding found along the doors of vehicles . most of the production is sold to gm , and goes into 56 gm plants in canada , the united states and mexico .
the products will be used in several models including the chevrolet avalanche , gmc envoy , saturn vue and cadillacs .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron closes on $ 450 m secured credit line
11 / 21 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones & company , inc . )
houston - ( dow jones ) - enron co . ( ene ) closed on the remaining $ 450 million of a previously announced $ 1 billion in secured credit lines and said it is in active discussions to restructure its debt to improve liquidity .
in a press release wednesday , enron said the $ 450 million credit facility is secured by the assets of enron ' s northern natural gas co .
a $ 550 million credit facility , secured by the assets of enron ' s transwestern pipeline co . , closed nov . 16 . the proceeds are being used to supplement short - term liquidity and to refinance maturing obligations .
the company said it was informed by the lead bank on the facility that the maturity on its $ 690 million note payable obligation will be extended to mid - december . enron expects the extension to be finalized shortly .
dow jones corporate filings alert reported monday that enron is currently preparing a restructuring plan aimed at taking aggressive steps to rationalize the company ' s existing cost structure , accelerating the process of divesting noncore businesses and assets and restructuring scheduled maturities of debt and other obligations .
enron ' s credit lines are from j . p . morgan , the investment - banking arm of j . p . morgan chase dow jones newswires ; 201 - 938 - 5400
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : update 1 - enron shares fall further on credit concerns .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - enron corp . shares tumbled 33 percent in early trading on wednesday , following a 22 . 8 percent drop on tuesday , amid concerns over the company ' s liquidity and growing questions over whether the proposed takeover by dynegy will go ahead .
enron ' s shares were down $ 2 . 29 to $ 4 . 70 in early trading on the new york stock exchange . the stock was the biggest loser by percentage and the most active stock on the nyse .
" the dynegy deal will take a long time and a lot of things could happen over that time period . dynegy did their homework , but if they missed anything , they have a number of exit opportunities , " said fulcrum global partners analyst michael barbis .
dynegy was not immediately available for comment .
wall street analysts said enron is losing market share because of credit concerns from its trading partners and questions over dynegy inc . ' s takeover offer . enron warned on monday it could be forced to pay by next week a $ 690 million debt triggered by a credit downgrade last week .
" enron is definitely losing market share on credit concerns . cash needs to run the buisness have now increased . the market perceives enron as needing more cash , " said barbis .
on monday , enron disclosed it is up against a deadline of nov . 26 to deliver collateral against the debt owed to a third party in one of its many partnerships .
if not , the partner has the right to liquidate all of the assets of the partnership , which include a brazilian natural gas company that enron was counting on selling to raise $ 250 million in cash .
enron is working to make alternative payment arrangements , since it can ill - afford to pay the debt now . enron has already already maxed out its $ 3 billion credit line , secured roughly $ 2 billion in loans and is looking for more cash to stay afloat .
on monday , the houston - based company also reduced previously reported 2001 third - quarter earnings by 3 cents per share and increased reported earnings for the first 9 months of the year by a penny per share .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : enron shares tumble on credit concerns .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - enron corp . shares tumbled 19 percent in opening trade on wednesday , amid concerns over the company ' s liquidity and growing questions over whether the proposed takeover by dynegy will go ahead .
shares were down $ 1 . 33 to $ 5 . 66 in early trading on the new york stock exchange .
wall street analysts said enron is losing market share because of credit concerns from its trading partners and questions over dynegy inc . ' s takeover offer . enron warned on monday it could be forced to pay by next week a $ 690 million debt triggered by a credit downgrade last week .
" the dynegy deal will take a long time and a lot of things could happen over that time period . dynegy did their homework , but if they missed anything , they have a number of exit opportunities , " said fulcrum global partners analyst michael barbis .
copyright ? 2000 dow jones enron ( url : http : / / . www . enron . com / ) , dynegy ( url : http : / / www . dynegy . com / ) and williams ( url : http : / / www . williamsenergy . com / ) , from the recommended list .
dynegy was expected to buy the troubled enron . it is still , but it ` s rated market perform now as is enron . williams rated market outperform . goldman says it ` s concerned about enron ` s ability to recover from the loss of significant business deals and sees no positive catalysts for the entire group largely due to the problems in enron .
on the upside , deutsche bank is raising xerox ( url : http : / / www . xerox . com / ) to buy from market perform saying it ` s pleased with the company ` s turnaround strategy . we ` re going to talk about that in detail when we speak with the analyst who made that call in just a moment .
first , we want to take a look at how these stocks are trading . entire group is down with the exception of xerox . it ` s up 15 cents .
peter ausnit is imaging analyst at deutsche bank alex . brown and joins us .
and thanks for joining us here on market call . what is it about xerox you like ?
peter ausnit , imaging analyst , deutsche bank alex . brown : well i think the company ` s really put its liquidity concerns behind it and now investors can look at the long - term picture , which is much brighter .
charles kadlec , j & w seligman : peter , it ` s chuck kadlec . good morning . is this is a heroic recommendation here ? is this - should we consider this more of a speculative investment or is this something that a conservative investor ought to be interested in ?
ausnit : i think investors should be interested in this if , over the next several quarters - in the near - term , the conditions are still quite difficult but over the long - term it ` s not that speculative . xerox has a large install base , a tremendous sales and service force and can probably return to industry standard margins .
kadlec : as you say , this probably depends on management ` s ability to execute here . why do you believe this management is going to be able to execute their strategy ?
ausnit : well their track records during the turnaround has been fairly strong and the strategy has made a lot of sense . they ` ve sold a lot of businesses . they ` ve done most of the things they promised to do such as bring on new third party equipment financing and they ` re going to bring on a new cfo as well .
schaffler : peter ausnit of deutsche bank alex . brown , thanks for joining us .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : research alert - enron , dynegy cut by goldman .
11 / 21 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 21 ( reuters ) - goldman sachs said on wednesday it removed merger partners enron corp . and dynegy inc . from its " recommended list " and downgraded the stocks to " market perform . "
goldman said it cut enron ' s 2001 earnings estimate to $ 1 . 35 a share , and cut the 2002 estimate to 50 cents a share amid concerns about " new and major " liquidity issues , and the company ' s ability to recover the business that has been lost .
the firm said the cash infusion from dynegy " appears inadequate to restore the confidence of enron customers . "
it said dynegy and williams cos inc . have " excellent long - term prospects , " but valuations throughout the sector may be under pressure until enron ' s issues are resolved .
shares of enron closed at $ 6 . 99 on tuesday , while dynegy closed at $ 41 . 70 . shares of williams closed at $ 29 . 26 .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron gets extension on $ 690 mln note due next week ( updatel )
2001 - 11 - 21 12 : 38 ( new york )
enron gets extension on $ 690 mln note due next week ( updatel )
( updates with amount of debt in fourth paragraph . )
houston , nov . 21 ( bloomberg ) - - enron corp . , whose shares had
dropped 92 percent this year amid a financial crisis , said lenders
extended to mid - december the payment date on a $ 690 million note
due next week .
enron , which agreed to be bought out by rival energy trader
dynegy inc . in a transaction now valued at more than $ 23 billion ,
said earlier this week a drop in its credit rating may force it to
repay the $ 690 million note . the repayment would strain cash
reserves enron needs to back its trading operations , investors and
analysts said .
the houston - based company didn ' t say in its release who holds
the note , which is owed by an affiliated partnership that owns
brazilian natural - gas assets and was backed by enron .
the note is held by a group of banks led by the citibank unit
of citigroup inc . , standard & poor ' s said in a press release
yesterday .
enron also is in discussions with other lenders on a
restructuring of its debt , the company said in a statement
distributed by pr newswire .
` ` we believe the interests of chase and enron ' s other primary
lenders are aligned in this restructuring effort , ' ' james lee ,
vice president of jp morgan chase & co . , said in the enron
statement . ` ` we will work with enron and its other primary lenders
to develop a plan to strengthen enron ' s financial position up to
and through its merger with dynegy . ' ' morgan has been advising
enron on its merger with dynegy .
enron said yesterday it may have to pay $ 9 . 15 billion in debt
due by 2003 , suggesting the company may run out of cash before the
merger closes . dynegy has said the merger should close before the
end of the third quarter of 2002 .
enron said in a regulatory filing that it has less than $ 2
billion in cash or credit lines .
shares of enron , the most active stock in u . s . trading , fell
$ 1 . 79 , or 23 percent , to $ 5 . 20 in midday trading . before the
announcement that it had renegotiated the $ 690 million note , its
shares had fallen as much as 42 . 78 percent , the lowest level in
more than a decade .
dynegy fell $ 2 . 50 , or 6 percent , to $ 39 . 20 . shares of
chevrontexaco corp . , which owns 26 percent of dynegy , rose 49
cents to $ 87 . 02
enron , dynegy shares fall 2 nd day on threat to buyout ( update 2 )
2001 - 11 - 21 11 : 49 ( new york )
enron , dynegy shares fall 2 nd day on threat to buyout ( update 2 )
( adds analyst comment in fourth paragraph . )
houston , nov . 21 , ( bloomberg ) - - shares of enron corp . , the
biggest energy trader , and dynegy inc . fell for a second day on
concern enron may run out of cash before its takeover by dynegy
can be completed .
enron tumbled as much as 33 percent , and dynegy dropped as
much as 6 . 7 percent . enron ' s bonds also fell . the company ' s 6 . 4
percent notes maturing in july 2006 were bid at 62 cents and
offered at 66 cents , traders said . they sold at about 72 cents
yesterday .
institutional investors sold shares of both companies after
goldman , sachs & co . analyst david fleischer downgraded them to
` ` market perform ' ' from his ` ` recommend ' ' list , other analysts
said .
the dynegy bid ` ` did not eliminate customer concerns about
enron ' s liquidity and long - term viability , ' ' goldman sachs said
in its report . ` ` we now believe that it will be difficult for
enron shares to generate strong returns until it is clear that
enron can operate on a normal basis without having to provide
cash or letters of credit to back routine transactions . ' '
fleischer also cut his 2002 profit estimate for enron to 50
cents from $ 1 . 35 . enron had been expected to make $ 1 . 90 next
year , the average estimate of 16 analysts surveyed by thomson
financial / first call .
enron said monday it may have to pay $ 9 . 15 billion in debt
due by 2003 , suggesting the houston - based energy trader may run
out of cash . the company said in a regulatory filing it has less
than $ 2 billion in cash or credit lines .
it also surprised some investors by saying a drop in its
credit rating may force it to repay a $ 690 million note next
week . enron said yesterday the terms of the notes , which it
guaranteed for an affiliated partnership that owns brazilian
natural - gas assets , are being renegotiated and that it had a
` ` verbal indications ' ' that the maturity of the notes will be
extended .
the company ' s dealings with affiliated partnerships led to
earnings restatements , credit - rating cuts , a federal
investigation and a management shakeup . dynegy plans to complete
its buyout by october , and enron may have to ask lenders to
restructure payment schedules .
mirant corp . , aquila inc . and other big energy traders are
doing fewer transactions with enron as concerns increase about
its credit rating and ability to finance daily business ,
executives said yesterday .
enron ' s stock fell $ 2 . 28 , or 32 percent , to $ 4 . 71 in
late - morning trading . earlier , it touched $ 4 . 67 , its lowest price
in more than a decade . the shares have plummeted 92 percent this
year . dynegy fell $ 2 . 70 , or 6 . 5 percent , to $ 39 . 00 . the shares
had dropped 26 percent this year .
u . s . equity movers : cardiac science , enron , guidant , triquint
2001 - 11 - 21 10 : 24 ( new york )
u . s . equity movers : cardiac science , enron , guidant , triquint
new york , nov . 21 ( bloomberg ) - - the following is a list of
companies whose shares are moving in u . s . markets wednesday , nov .
21 . the stock symbol is in parentheses after the company name .
major moving stocks :
enron corp . ( ene ) fell $ 1 . 54 , or 22 percent , to $ 5 . 45 and
traded as low as $ 5 . 44 . the energy trader shares fell for a second
day on concern enron may run out of cash before its takeover by
dynegy inc . ( dyn ) can be completed .
other moving stocks :
cardiac science inc . ( dfib ) rose 51 cents , or 16 percent , to
$ 3 . 65 and traded as high as $ 3 . 89 . the maker of equipment used to
restore a normal heartbeat to patients in cardiac arrest said the
san diego city council approved an agreement for the company to
deploy automated external defibrillators in the region . the
company made the announcement in a press release distributed by pr
newswire . officials couldn ' t immediately be reached to comment .
guidant corp . ( gdt ) rose $ 4 . 18 , or 8 . 9 percent , to $ 51 and
traded as high as $ 51 . 50 . the maker of products to treat heart
disease said a study showed implantable defibrillators cut deaths
by 30 percent in heart - attack survivors , potentially expanding the
$ 1 . 9 billion market for the product .
portal software inc . ( prsf ) fell 34 cents , or 15 percent , to
$ 1 . 89 and traded as low as $ 1 . 64 . the provider of internet - billing
programs said in a release distributed by business wire that it
forecasts a loss of 9 cents to 10 cents a share in the fourth
quarter ending jan . 31 . the company is expected to lose 11 cents ,
the average estimate of analysts surveyed by first call . officials
couldn ' t be reached to comment .
triquint semiconductor inc . ( tqnt ) fell $ 1 . 99 , or 10 percent ,
to $ 17 . 56 and traded as low as $ 17 . 35 . the communications -
equipment chipmaker said it would report fourth - and first - quarter
results at the low end of previous forecasts . triquint was cut to
` ` neutral ' ' from ` ` buy ' ' in a report by u . s . bancorp piper jaffray
cos . analyst samuel may .
tickers : ene dfib gdt tqnt
money flows , the difference between the value of trades made
at a higher price than the previous trade and those made at a
lower price , may also appear for some stocks . these inflows and
outflows show whether people are willing to pay more for a stock
that ' s rising , or to sell a stock that ' s falling for less . if not
it ' s a signal the share price may soon change direction .
enron , dynegy shares fall 2 nd day on threat to dynegy bid
2001 - 11 - 21 09 : 57 ( new york )
enron , dynegy shares fall 2 nd day on threat to dynegy bid
houston , nov . 21 , ( bloomberg ) - - shares in enron corp . and
dynegy inc . fell for a second day on concern enron may run out of
cash before its takeover by dynegy can be completed .
enron fell $ 1 . 37 , or 20 percent to $ 5 . 62 in early trading .
dynegy fell $ 1 . 95 , or 4 . 7 percent , to $ 39 . 75 .
enron bonds extended declines . the company ' s 6 . 4 percent
notes maturing in july 2006 were bid at 60 cents and offered at 68
cents , traders said . they traded at about 72 cents yesterday .
enron corp . cut to ` market perform ' at goldman sachs
2001 - 11 - 21 08 : 46 ( new york )
princeton , new jersey , nov . 21 ( bloomberg data ) - - enron corp . ( ene us )
was downgraded to ` ` market perform ' ' from ` ` recommend list ' ' by analyst david
n fleischer at goldman , sachs & co .
earnings estimates : period previous estimate new estimate
per share ( usd ) fy 2001 1 . 80 1 . 35
fy 2002 2 . 15 0 . 50
enron says lenders extend $ 690 mln note payment to mid - december
2001 - 11 - 21 12 : 10 ( new york )
enron says lenders extend $ 690 mln note payment to mid - december
houston , nov . 21 ( bloomberg ) - - enron corp . said its lenders
extended to mid - december the payment date on a $ 690 million note ,
giving the debt - laden energy trader more time to restructure its
finances .
enron said it ' s still committed to a takeover by dynegy inc .
the company said it secured the remaining $ 450 million of a
previously announced $ 1 billion credit line .
enron shares pared losses after the announcement of the debt
extension . the stock fell $ 1 . 54 , or 22 percent , to $ 5 . 45 in midday
trading .
plunge says end is near at enron
by peter eavis
senior columnist
11 / 21 / 2001 12 : 32 pm est
enron ( ene : nyse - news - commentary - research - analysis ) shares plunged a second straight day wednesday as fear mounted that the struggling energy trader ' s bailout merger plan will unravel .
a potentially lethal cash crunch appears to be gripping enron , even though its planned acquirer dynegy ( dyn : nyse - news - commentary - research - analysis ) has injected $ 1 . 5 billion of cash , and banks have opened new credit lines . an enron collapse would cause weeks of dislocation in the energy markets that would damage other energy traders , and it would cause big losses for the houston company ' s creditors .
just before noon est , enron announced in a press release that it had extended to mid - december a $ 690 million obligation that was due next week . it also said that it had agreed with its bankers to draw down the remaining $ 450 million of a previously announced $ 1 billion secured credit line that has j . p . morgan chase as its lead banker .
investors have been fleeing enron since the company last month disclosed a $ 1 . 2 billion writedown to unwind some related - party hedging transactions . the securities and exchange commission is probing enron deals with related parties . the october disclosure made investors uneasy because it suggested the company hadn ' t been forthcoming about the true state of its finances , and it showed that enron was facing serious liquidity problems .
those fears were temporarily quieted earlier this month when enron agreed to be acquired by smaller rival dynegy . but enron ' s disclosure monday that it faces additional earnings and financing troubles renewed the rush to the exits . in the wednesday release , enron ceo ken lay said his company was still committed to the merger : " we continue to believe that this merger is in the best interests of our shareholders , employees and lenders . " dynegy later issued a press release indicating it is " continuing our confirmatory due diligence " regarding the merger . neither enron nor dynegy returned calls seeking comment .
after plunging 23 % tuesday to $ 6 . 99 , enron was down a staggering 34 % at one point wednesday . it moved slightly higher after the midday press release to trade at $ 4 . 90 . enron shares have lost more than 80 % of their value since the company issued its third - quarter earnings release last month . dynegy dropped $ 2 . 44 , to $ 39 . 26 , though it remains substantially above premerger levels .
at the heart of enron ' s trouble is the sense that the company isn ' t letting on the full extent of its troubles . the selloff in enron shares began in earnest oct . 16 , when the company disclosed in an earnings conference call that it would take a $ 1 . 2 billion writedown to unwind some related - party transactions . critics of the company said those deals , in which the company did business with separate entities involving enron managers , raised serious ethical and disclosure issues .
the dynegy merger was taken as a vote of confidence for enron , since as a big trading partner dynegy would appear to have a solid grasp of enron ' s situation . as a result , shares in both companies rallied after the deal ' s announcement . but monday ' s disclosure that enron faced $ 690 million in bond payments next week reignited worries that the company faced steeper challenges than it has detailed . according to a merrill lynch report cited in the new york times wednesday , dynegy wasn ' t aware of the $ 690 million obligation . critics of the deal wondered whether enron had told dynegy about all its obligations .
liquidity fears have also been rekindled by information contained in a filing of quarterly results that show the company consumed as much as $ 5 billion of cash in recent weeks . by the end of 2002 , enron has to find around $ 9 billion to pay back various obligations . it had $ 1 . 2 billion in cash on hand as of nov . 16 , according to the filing .
tellingly , dynegy shares haven ' t plunged along with enron , suggesting that investors see a collapse of the merger as catastrophic for enron but not for dynegy . at current levels , enron shares are trading at more than a 50 % discount to the dynegy offer .
j . p . morgan has taken a leading role in helping enron . it has lent funds and it helped restructure the $ 690 million obligation . the bank ' s stock was down 78 cents to $ 38 . 62 . " we will work with enron and its other primary lenders to develop a plan to strengthen enron ' s financial position up to and through its merger with dynegy , " said james lee , a top banker at morgan , in the enron release .
from cbs . marketwatch . com , online at :
dynegy , enron say merger to proceed
by myra p . saefong
1 : 52 pm et nov 21 , 2001
washington ( cbs . mw ) - - merger partners enron and dynegy restated their
commitment wednesday to completing a deal , on the heels of embattled
enron ' s announcement that its lead lender granted it more time to pay
off a $ 690 million note set to come due next week .
" we are continuing our confirmatory due diligence and working to
accelerate the regulatory approvals required to complete the merger , "
said chuck watson , dynegy ' s chairman and chief executive , in a
statement .
shares of enron ( ene ) recovered slightly in afternoon trading but
remained under pressure .
on heavy volume , the stock - - which had touched $ 4 earlier in the
session - - was down $ 1 . 83 to trade at $ 5 . 16 , a new 10 - year low . some 84
million shares had changed hands .
enron declined 23 percent tuesday after the company revealed the
upcoming debt deadline and restated its earnings .
meanwhile , dynegy shares lost $ 1 . 83 to stand at $ 39 . 87 .
enron said that the lead bank on the $ 690 million debt agreed to extend
the maturity date to mid - december , which will give the company time to
restructure the facility , and added it expects to further restructure
its debt .
" we . . . believe we can identify a mutually beneficial restructuring to
enhance our cash position , strengthen our balance sheet , and address
upcoming maturities , " said jeff mcmahon , chief financial officer , in a
statement .
j . p . morgan chase co . said it and other lenders are committed to
helping enron improve its financial position .
also , enron reaffirmed its commitment to a merger with dynegy and said
it closed on a previously announced $ 450 million line of credit from
j . p . morgan , collateralized by the company ' s northern natural gas co .
enron - - which is being acquired by its smaller rival dynegy ( dyn ) at a
fire - sale price - - revealed in a securities and exchange commission
filing monday that it had to pay off or refinance $ 690 million in debt
obligations by next monday or risk triggering nearly $ 4 billion in
additional payments .
if enron had missed that deadline and didn ' t post collateral , investors
had the right to demand immediate liquidation of the assets of one of
enron ' s limited partnerships , the unusual business entities at the
center of the company ' s murky transactions currently under
investigation .
the sec filing of monday also contained yet another restatement of
financial results on the heels of a similar filing that disclosed more
than four years of restated earnings figures .
earlier wednesday , goldman sachs lowered its rating on enron ' s stock to
" market performer " from its " u . s . recommended list , " citing " major "
liquidity issues and concerns over whether the company can recover the
business it has lost .
cibc world markets also cut enron to a " hold " from a " buy . "
commerzbank weighed in wednesday , saying enron ' s viability is in doubt .
" we believe the filing clearly shows that enron remains in a precarious
financial position and its status as a going concern is much in doubt , "
analysts andre meade and andrew smith wrote . " it appears that enron ' s
situation could worsen in a number of ways . "
though enron ' s most recent disclosures shed more light on the fiscal
situation , meade and smith characterized the information as " piecemeal . "
" it appears that the full extent of enron ' s problems is not currently
known , " they said in a note , cautioning clients against investing in
enron .