NEW YORK, Nov 12 (Reuters) - Online energy trading
leader EnronOnline will merge with smaller rival
DynegyDirect after its parent company Enron Corp.
(NYSE:ENE - news) agreed last week to a $9 billion
takeover by Dynegy Inc. (NYSE:DYN - news), Dynegy said
Monday.

The integration of the two platforms will take about
six to nine months, Dynegy said. In the meantime, the
two will continue to operate separately.

``We're looking to take the best of both platforms for
the integrated company,'' said Dynegy spokesman John
Sousa. ``(The emerging platform) will continue to be
based on a one-to-many philosophy as it stands now.''

On both EnronOnline and DynegyDirect traders can only
deal with Enron and Dynegy, respectively.

EnronOnline is the biggest online energy trading
platform in the United States, with a daily average of
$2.6 billion in trades in the past month.

DynegyDirect is a much smaller, though growing
platform. It recorded nearly $10 billion in
transactions in the third quarter.

The two platforms offer trading in hundreds of
products and services, from crude oil and refined
products, to natural gas and electricity. Most of the
trading is done in U.S. markets, but some European
markets are available as well.

Enron, currently North America's biggest buyer and
seller of both natural gas and electricity, agreed to
a Dynegy buyout after it was overwhelmed by a series
of problems, including a U.S. regulatory probe into
the off-balance sheet dealings, a $1.2 billion cut in
shareholder equity and damaging credit rating
downgrades.

However, Dynegy can drop its offer if more bad news
emerges, or if pending lawsuits against Enron lead to
more than $3.5 billion in costs.

Dynegy also expressed confidence the takeover will win
U.S. regulatory approval and said it does not expect
any antitrust concerns to impede the merger of the two
electronic platforms.

Dynegy shares gained $5.55, or 14.3 percent, to $44.31
on the New York Stock Exchange, while shares of Enron
rose 61 cents, or 7 percent, to $9.24.

The takeover halted a free-fall in Enron's stock that
lost about 75 percent of its market capitalization in
the past month.