- News>
- Companies & Commodities
Enron to sell off money-losing assets
Enron Corporation, the once-mighty energy trader, is dumping money-losing assets - including its power operations in India - and focusing on its core wholesale power marketing business as it moves toward a merger with rival Dynegy Inc.
Enron Corporation, the once-mighty energy trader, is dumping money-losing assets - including its power operations in India - and focusing on its core wholesale power marketing business as it moves toward a merger with rival Dynegy Inc.
The effort is aimed at improving Enron's financial health following disclosures that the company inflated profit figures and didn't reveal large amounts of debt to shareholders, Enron President and chief executive Ken Lay told investors.
Businesses Enron wants to shed include a high-speed internet unit and power operations in India and Brazil, which lay said have performed far worse than we ever could have imagined when we made these investments.
In hindsight, we made some very bad investments in non-core businesses, Lay said during the conference call for investors and analysts.
Dynegy announced Friday it would buy Enron in a deal now worth dlrs 10.5 billion, and lay said the company is focusing on conserving cash and getting the most out of the core businesses Enron will keep.
Enron executives also said they expect the company's fourth quarter earnings to be hurt by the ongoing financial problems. No details were offered, but the executives said they would issue guidance for forth quarter earnings in two weeks.
Dynegy agreed to buy Enron after the energy trading giant's stock price plunged about 80 per cent in the weeks following Enron's posting of a dlrs 618 million third quarter loss. Dynegy will also assume dlrs 13 billion of enron debt.
Bureau Report
Businesses Enron wants to shed include a high-speed internet unit and power operations in India and Brazil, which lay said have performed far worse than we ever could have imagined when we made these investments.
In hindsight, we made some very bad investments in non-core businesses, Lay said during the conference call for investors and analysts.
Dynegy announced Friday it would buy Enron in a deal now worth dlrs 10.5 billion, and lay said the company is focusing on conserving cash and getting the most out of the core businesses Enron will keep.
Enron executives also said they expect the company's fourth quarter earnings to be hurt by the ongoing financial problems. No details were offered, but the executives said they would issue guidance for forth quarter earnings in two weeks.
Dynegy agreed to buy Enron after the energy trading giant's stock price plunged about 80 per cent in the weeks following Enron's posting of a dlrs 618 million third quarter loss. Dynegy will also assume dlrs 13 billion of enron debt.
Bureau Report