---------------------- Forwarded by Elizabeth Tilney/HOU/EES on 11/27/2001 11:54 AM ---------------------------


Peggy Mahoney
11/27/2001 11:45 AM
To:	Elizabeth Tilney/HOU/EES@EES
cc:	 
Subject:	Enron Corp.: Dynegy Confirms -3: Deal May Be Cut More Than 40% -WSJ

Doesn't have the facts about 401K.  Need to move fast. 
---------------------- Forwarded by Peggy Mahoney/HOU/EES on 11/27/2001 11:45 AM ---------------------------


djcustomclips@djinteractive.com on 11/27/2001 10:18:51 AM
Please respond to nobody@mail1.djnr.com
To:	1529@WCTOPICS.djnr.com
cc:	 
Subject:	Enron Corp.: Dynegy Confirms -3: Deal May Be Cut More Than 40% -WSJ


Dynegy Confirms -3: Deal May Be Cut More Than 40% -WSJ

11/27/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

  Earlier Tuesday, a report in The Wall Street Journal quoted people
familiar with the matter who said Enron and Dynegy were in advanced
discussions to cut the price of the all-stock transaction by more than
40% to about $5 billion.   Sousa, the Dynegy spokesman, didn't comment
on the newspaper report.

  Dynegy shares recently traded at $40, up 75 cents, or 1.9%, while
Enron shares changed hands at $3.94, down 7 cents, or 1.7%.
  Under the original terms of the transaction, Enron shareholders are to
receive 0.2685 of a Dynegy share, or $10.78, for each share outstanding,
or about $9.14 billion, based on Dynegy's recent stock price.

  According to the Journal report, the new terms could be below 0.15 of
a Dynegy share.

  The deal is critical for Enron, which also simultaneously carrying out
talks to receive between $500 million to $1 billion in additional
funding to support its operations, while carrying on negotiations to
restructure its debt, which totals about $13 billion.

  While Dynegy has already provided Enron with a cash infusion, it is
uncertain how long Enron's current funds will allow it to remain
solvent.

  Meanwhile, a third employee lawsuit has been filed against Enron over
lost 401(k) retirement savings due to the recent collapse of Enron's
stock, which has declined more than 90% in the trailing 12 months. The
suit claims Enron "locked down" the plan, which prevented employees from
being able to sell the shares, and seeks $850 million for plan losses.

  Although the other recently filed employee suits didn't disclose the
amount of compensation the plaintiffs are seeking, it is possible the
suits seek a similar level of damages, a CreditSights report said.

  If this is true, the CreditSights report said, it is possible the
clause that allows Dynegy to walk away from the deal if the liabilities
from "pending"' or "threatened" litigation may exceed $3.5 billion may
be invoked.

  In addition, to the employee lawsuits, more than a dozen shareholder
suits have been filed against Enron.

  -By Christina Cheddar, Dow Jones Newswires; 201-938-5166;
christina.cheddar@dowjones.com



Folder Name: Enron Corp.
Relevance Score on Scale of 100: 100

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