ENRON ( WKN 851914 ): JETZT KAUFEN!!!

FT: Enron may get lifeline with $1billion injection

                Nov 28, 2001 (FWN Select via COMTEX) -- A new consortium of investors has
                proposed injecting more than $1 billion into Enron, throwing a potential
                lifeline to the struggling energy trader. The proposed equity investment would
                support Dynegy's $9.4 billion rescue bid for Enron, according to one person
                close to the talks. Dynegy has been locked in negotiations with its
                Houston-based rival about reworking the details of its takeover. Dynegy was
                understood to be considering halving the value of the all-stock bid in the light
                of Enron's deepening financial crisis. If additional cash is made available to
                Enron it could help reassure Dynegy, and Enron's lenders, that the heavily
                indebted company can survive the six to nine months it might take to complete
                the bid. It was not clear on Tuesday who was involved in the new consortium,
                whether Enron would accept the proposal, and on what terms. If it is accepted,

11/28 11:14
Dynegy to Pull out of Enron Purchase, Person Says (Update1)
By Mark Lake


New York, Nov. 28 (Bloomberg) -- Dynegy Inc. plans to abandon its proposed purchase of energy trader Enron Corp. after Standard & Poor's Corp. cut Enron's credit rating to junk status, said people familiar with the situation.

Bankers representing Enron and Dynegy last night failed to line up $1.5 billion funds the company needed to operate until Dynegy could complete the acquisition. The lack of funds and the prospect of a downgrade contributed to decision, people said.

``The reality is Enron's going bankrupt,'' said Michael Willingham, a risk manager at Itochu International Inc. ``Enron touted themselves as the king of risk management, but it desn't look like they've mansaged their risk very well.''

Enron shares plunged $2.41, or 59 percent, to $1.7, its lowest level in 19 years. The stock was the most active on U.S. exchanges, trading 69 million shares by 11 a.m. Enron's 6.4 percent bonds, which mature in 2006, fell to 44 cents on the dollar down from 53 cents yesterday. At that price the bonds yield 29 percent.

Bankers led by J.P. Morgan Chase & Co. Vice Chairman James B. Lee tried for for two weeks to raise the cash Enron needed. They failed because of concern Enron wouldn't be able to meet its obligations. That concern was heightened after Enron disclosed a $690 million payment due this week.

Trading Doubts

Enron faced a cash crunch in part because some trading partners lost confidence the company would have the cash to pay bills and either demanding more collateral to trade or restricting trading with the Houston-based company.