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Dynegy
reiterates stand on Enron acquisition
Sanjay
Jog
Mumbai, Nov 27: Dynergy Inc has stated that it has
not changed its stand on the acquisition of Enron Corp despite
sharp fall in Enron stock prices. The company has made it
clear that it continues to perform confirmatory due diligence
and focus on securing the necessary regulatory approvals.
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Enron shares
dip
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Shares of Enron Corp fell 15 per cent
as concerns continued to mount over the energy giant’s
acquisition by Dynegy Inc, with investors focusing more
and more on the deal’s breaking clause, dealers said.
They said that with Enron shares having slid well below
the Dynegy offer price of $9.85 a share, the Chevron
Texaco affiliate may well reconsider its offer, or walk
away from the deal all together.
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Dynegy Inc spokesperson John Sousa, in an
e-mail communication to The Financial Express
said, “We continue to be optimistic about the potential of
the merger. We expect it to be completed in the time-frame
we outlined when we announced the deal on November 9.”
Mr Sousa’s statement deserves special significance especially
as certain news reports which appeared in the US and India
had hinted that Dynegy Inc may reconsider its deal in view
of the sharp fall in Enron stock prices last week.
The media reports had said that Dynegy Inc may have to renegotiate
the Enron acquisition deal or the deal may get collapsed entirely
in the wake of worsening stock woes of Enron Corporation.
Enron shares ended down more than 5 per cent or 27 cents,
to $4.74 at the close of Friday last week trading on the New
York stock exchange. Dynegy shares had closed up 64 cents,
or 1.61 per cent to $40.40.
In a related development, Dynegy’s Claudia Morlan (corporate
communication) said the new company after the completion of
proposed acquisition of Enron would focus on the core businesses
of North America and European wholesale energy markets. “Enron
has said that Dabhol is not a core asset and they are looking
to sell it. The disposition of Dabhol is not a condition of
the merger closing,” Morlan added.
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