Message-ID: <3005220.1075862311207.JavaMail.evans@thyme> Date: Wed, 21 Nov 2001 11:16:27 -0800 (PST) From: courtney.votaw@enron.com Subject: Enron Mentions- 11/21/01 Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Votaw, Courtney X-To: X-cc: X-bcc: X-Folder: \SBECK (Non-Privileged)\Beck, Sally\Inbox X-Origin: Beck-S X-FileName: SBECK (Non-Privileged).pst Dynegy Issues Statement On Enron Merger Status Business Wire, 11/21/01 Enron says repayment of 690 mln usd debt extended until mid-Dec AFX News, 11/21/01 USA: Enron secures credit line as shares fall. Reuters English News Service, 11/21/01 Enron stock free-fall continues Associated Press Newswires, 11/21/01 Enron Closes On $450M Secured Credit Line Dow Jones News Service, 11/21/01 USA: UPDATE 1-Enron shares fall further on credit concerns. Reuters English News Service, 11/21/01 USA: Enron shares tumble on credit concerns. Reuters English News Service, 11/21/01 Upgrades and Downgrades CNNfn: Market Coverage - Morning, 11/21/01 USA: RESEARCH ALERT-Enron, Dynegy cut by Goldman. Reuters English News Service, 11/21/01 Enron Gets Extension on $690 Mln Note Due Next Week (Update1) Bloomberg, 11/21/01 Enron, Dynegy Shares Fall 2nd Day on Threat to Buyout (Update2) Bloomberg, 11/21/01 U.S. Equity Movers: Cardiac Science, Enron, Guidant, TriQuint Bloomberg, 11/21/01 Enron, Dynegy Shares Fall 2nd Day on Threat to Dynegy Bid Bloomberg, 11/21/01 Enron Corp. Cut to `Market Perform' at Goldman Sachs Bloomberg, 11/21/01 Enron Says Lenders Extend $690 Mln Note Payment to Mid-December Bloomberg, 11/21/01 Plunge Says End Is Near at Enron TheStreet.com, 11/21/01 DYNEGY, ENRON SAY MERGER TO PROCEED CBS.MarketWatch.com, 11/21/01 Dynegy Issues Statement On Enron Merger Status 11/21/2001 Business Wire (Copyright (c) 2001, Business Wire) HOUSTON--(BUSINESS WIRE)--Nov. 21, 2001--Dynegy Inc. (NYSE:DYN) Chairman an= d CEO Chuck Watson today said he is encouraged by Enron Corp.'s report this= morning that it has closed the remaining $450 million credit facility secu= red by the assets of Northern Natural Gas Pipeline and has received a commi= tment from its lead bank to extend the $690 million note payable obligation= described in Enron's recent 10-Q filing.=20 "We are continuing our confirmatory due diligence and working to accelerate= the regulatory approvals required to complete the merger in accordance wit= h the previously announced agreement," he said. Watson also noted that ChevronTexaco recently reiterated that it has "full = confidence in Dynegy's disciplined management approach to complete the merg= er and to build a new company into an industry leader." ChevronTexaco owns = 26 percent of Dynegy's outstanding common stock.=20 Dynegy Inc. is one of the world's top energy merchants. Through its global = energy delivery network and marketing, trading and risk management capabili= ties, Dynegy provides innovative solutions to customers in North America, t= he United Kingdom and Continental Europe.=20 Certain statements included in this news release are intended as "forward-l= ooking statements" under the Private Securities Litigation Reform Act of 19= 95. These statements include assumptions, expectations, predictions, intent= ions or beliefs about future events. Dynegy cautions that actual future res= ults may vary materially from those expressed or implied in any forward-loo= king statements. Some of the key factors that could cause actual results to= vary from those Dynegy expects include changes in commodity prices for ene= rgy or communications products or services; the timing and extent of deregu= lation of energy markets in the U.S. and Europe; the timing of required app= rovals for the Dynegy/Enron merger and the success of integration and cost = savings measures relating to the merger; the effectiveness of Dynegy's risk= management policies and procedures and the creditworthiness of customers a= nd counterparties; the liquidity and competitiveness of wholesale trading m= arkets for energy commodities, including the impact of electronic or online= trading in these markets; operational factors affecting Dynegy's power gen= eration or Dynegy's midstream natural gas facilities; uncertainties regardi= ng the development of, and competition within, the market for communication= s services in the U.S. and Europe; uncertainties regarding environmental re= gulations or litigation and other legal or regulatory developments affectin= g Dynegy's business; general political, economic and financial market condi= tions; and any extended period of war or conflict involving the United Stat= es or Europe. Moreover, Dynegy's expectation that the acquisition will be a= ccretive to earnings in 2002 and beyond is based upon achieving certain sal= es projections, meeting certain cost targets and successfully integrating t= he acquired assets. More information about the risks and uncertainties rela= ting to these forward-looking statements are found in Dynegy's SEC filings,= which are available free of charge on the SEC's Web site at http://www.sec= .gov. CONTACT: Dynegy Inc., Houston 713/767-5800=20 13:26 EST NOVEMBER 21, 2001=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron says repayment of 690 mln usd debt extended until mid-Dec 11/21/2001 AFX News (c) 2001 by AFP-Extel News Ltd HOUSTON (AFX) - Enron Corp said its creditor banks have granted an extensio= n on a 690 mln usd note payable by Nov 27 until mid-December, giving it eno= ugh time to restructure the debt.=20 In a statement, the troubled energy company said the extension has been agr= eed following talks with its main creditor banks on restructuring its debt = to avoid a liquidity crisis. "We have been in continuous contact with our banks and believe we can ident= ify a mutually beneficial restructuring to enhance our cash position, stren= gthen our balance sheet and address upcoming maturities," said chief financ= ial officer Jeffrey McMahon.=20 Enron first informed investors of the possibility it would be forced to rep= ay the 690 mln usd note in a filing to the Securities and Exchange Commissi= on on Monday.=20 The obligation arose after Standard & Poor's cut the company's long-term de= bt rating to BBB- last week, forcing it to either post collateral on the no= te or repay it on maturity.=20 Enron said it has also secured the remaining 450 mln usd of a previously an= nounced 1 bln usd credit line from JP Morgan and Salomon Smith Barney. The = facility is secured by the assets of Enron's Northern Natural Gas Co unit.= =20 The other 550 mln usd are secured by the assets of its Transwestern Pipelin= e Co.=20 Enron also said it is still committed to its merger with Dynegy Inc, announ= ced on Nov 9.=20 "We continue to believe that this merger is in the best interests of our sh= areholders, employees, and lenders," said chairman and chief executive Kenn= eth Lay. "It offers the opportunity to create a formidable player in the me= rchant energy business with substantial growth prospects and a strong finan= cial position."=20 JP Morgan Chase vice chairman James Lee said the bank will work with Enron = and its other creditor banks "to develop a plan to strengthen Enron's finan= cial position up to and through its merger with Dynegy", which is expected = to close in the third quarter of 2002.=20 cl/gc For more information and to contact AFX: www.afxnews.com and www.afxp= ress.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: Enron secures credit line as shares fall. 11/21/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 21 (Reuters) - Enron Corp. said on Wednesday it secured the r= emaining $450 million of its $1 billion credit line and reaffirmed its comm= itment to an agreement to be taken over by rival Dynegy Inc.=20 Facing a crisis of confidence, Enron said it is in active talks with its ot= her lenders to restructure its debt obligation and had pushed back the dead= line for repaying a $690 million loan obligation to mid-December. "We continue to believe that this merger is in the best interests of our sh= areholders, employees, and lenders," Enron Chairman and Chief Executive Ken= Lay said in a statement.=20 Enron shares were down 28 percent after noon on Wednesday, after being down= 33 percent earlier in the day. Its shares fell about 23 percent on Tuesday= amid concerns over its liquidity and growing questions over whether the pr= oposed takeover by Dynegy would go ahead. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron stock free-fall continues 11/21/2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. HOUSTON (AP) - Shares of embattled Enron Corp. plunged another 32 percent W= ednesday morning as analysts and investors continued to doubt the once-migh= ty energy trader's ability to recover lost business and investor confidence= .=20 In a report released Wednesday, Goldman Sachs & Co. analyst David Fleischer= became the latest to question Enron's future, saying that an SEC filing by= the Houston-based company earlier this week "raised new issues about liqui= dity and the ability of the company to even finance itself over the next se= veral months." Analysts are also questioning whether Dynegy Inc.'s planned dlrs 8.9 billio= n acquisition of Enron will survive given the latest revelations.=20 Documents filed with the Securities and Exchange Commission by Enron late M= onday restated the company's third-quarter earnings and stated that it may = have to repay a dlrs 690 million debt by next week because of decreased cre= dit ratings.=20 The filing also noted that Enron's financial woes have led to a "reduced le= vel of transaction activity" with the company by trading partners.=20 Enron shares fell 23 percent Tuesday, then dropped another dlrs 2.25, or 32= percent, to dlrs 4.74 Wednesday in extremely heavy trading on the New York= Stock Exchange.=20 Fleischer said Enron's Nov. 16 cash balance of dlrs 1.2 billion is inadequa= te to meet remaining debt obligations.=20 Fleischer acknowledged, however, Enron's efforts to renegotiate next week's= due date for the dlrs 690 million debt, which was triggered Nov. 12 when t= he company's credit rating was downgraded to BBB-, saying that there are in= dications that Enron's banks may be willing to roll current maturities over= and even make new equity investments.=20 Michelle Foss, director of the Energy Institute at the University of Housto= n, said this latest round of troubles had to raise concerns about whether t= he Dynegy-Enron deal will be pulled off.=20 "It doesn't look like it's going to be able to happen," Foss said. "It did = look like a decent idea when they proposed the merger, but today I'm sure t= hey'll look at it and see if they can salvage their attempt to buy Enron."= =20 Shares of Dynegy were off dlrs 2.55 to dlrs 39.15 in trading on the NYSE.= =20 ---=20 Tobacco suits by Venezuela, Brazil's Espirito Santo dropped=20 MIAMI (AP) - Health care cost-recovery lawsuits against major U.S. cigarett= e makers by Venezuela and the Brazilian state of Espirito Santo have been d= ismissed.=20 "This is another important reminder to American plaintiffs' lawyers that a = state court won't ignore the overwhelming number of decisions by federal co= urts rejecting these lawsuits," William S. Ohlemeyer, Philip Morris Cos. vi= ce president, said Tuesday after the decisions.=20 Attorneys for several foreign governments have filed an assortment of lawsu= its in U.S. federal and state courts in an attempt to find some legal mecha= nism that withstands judicial scrutiny.=20 Russia and other Brazilian states are among the foreign governments that ha= ve sued in Miami, where a verdict of dlrs 145 billion was awarded to Florid= a smokers against the five biggest U.S. cigarette makers.=20 Ecuador's suit in Miami was withdrawn earlier when another state judge anno= unced his intention to dismiss it.=20 ----=20 General Motors of Canada inks supplier agreement with Quebec rubber plants= =20 Eds: Dollar figures are Canadian.=20 MONTREAL (AP) - General Motors of Canada has signed supplier agreements wit= h a Quebec auto-parts maker that helped create about 800 jobs, news reports= said Wednesday.=20 The deal with Saar-Gummi Automotive Group in Magog, Quebec, is part of Gene= ral Motors' commitment to offset the jobs that will be lost when it shuts d= own its car assembly factory in Boisbriand, Quebec, next year, killing 1,40= 0 jobs.=20 GM did not reveal the value of the contracts, but German-based Saar-Gummi s= aid Tuesday it has made a dlrs 40 million investment in its seven Magog pla= nts, doubling its workforce to 1,600 employees from 800 since last summer.= =20 The factories make molded rubber parts for cars, such as the rubber strips = and molding found along the doors of vehicles. Most of the production is so= ld to GM, and goes into 56 GM plants in Canada, the United States and Mexic= o.=20 The products will be used in several models including the Chevrolet Avalanc= he, GMC Envoy, Saturn VUE and Cadillacs. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron Closes On $450M Secured Credit Line 11/21/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) HOUSTON -(Dow Jones)- Enron Co. (ENE) closed on the remaining $450 million = of a previously announced $1 billion in secured credit lines and said it is= in active discussions to restructure its debt to improve liquidity.=20 In a press release Wednesday, Enron said the $450 million credit facility i= s secured by the assets of Enron's Northern Natural Gas Co. A $550 million credit facility, secured by the assets of Enron's Transweste= rn Pipeline Co., closed Nov. 16. The proceeds are being used to supplement = short-term liquidity and to refinance maturing obligations.=20 The company said it was informed by the lead bank on the facility that the = maturity on its $690 million note payable obligation will be extended to mi= d-December. Enron expects the extension to be finalized shortly.=20 Dow Jones Corporate Filings Alert reported Monday that Enron is currently p= reparing a restructuring plan aimed at taking aggressive steps to rationali= ze the company's existing cost structure, accelerating the process of dives= ting noncore businesses and assets and restructuring scheduled maturities o= f debt and other obligations.=20 Enron's credit lines are from J.P. Morgan, the investment-banking arm of J.= P. Morgan Chase & Co. (JPM), and Salomon Smith Barney, the investment-banki= ng arm of Citigroup Inc. (C).=20 Enron also reaffirmed its commitment to the merger with Dynegy Inc. (DYN). = On Nov. 9, Enron and Dynegy signed a definitive merger agreement that would= give Enron shareholders 0.2685 share of a Dynegy share. The merger is expe= cted to close by the end of the third quarter of 2002.=20 On Monday, Enron filed its Form 10-Q for the third quarter, which reflected= a wider loss by 3 cents a share. The energy company previously reported a = loss of $618 million, or 84 cents a share, on revenue of $47.6 billion for = the third quarter ended Sept. 30.=20 -Stephen Lee; Dow Jones Newswires; 201-938-5400 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: UPDATE 1-Enron shares fall further on credit concerns. 11/21/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 21 (Reuters) - Enron Corp. shares tumbled 33 percent in early= trading on Wednesday, following a 22.8 percent drop on Tuesday, amid conce= rns over the company's liquidity and growing questions over whether the pro= posed takeover by Dynegy will go ahead.=20 Enron's shares were down $2.29 to $4.70 in early trading on the New York St= ock Exchange. The stock was the biggest loser by percentage and the most ac= tive stock on the NYSE. "The Dynegy deal will take a long time and a lot of things could happen ove= r that time period. Dynegy did their homework, but if they missed anything,= they have a number of exit opportunities," said Fulcrum Global Partners an= alyst Michael Barbis.=20 Dynegy was not immediately available for comment.=20 Wall Street analysts said Enron is losing market share because of credit co= ncerns from its trading partners and questions over Dynegy Inc.'s takeover = offer. Enron warned on Monday it could be forced to pay by next week a $690= million debt triggered by a credit downgrade last week.=20 "Enron is definitely losing market share on credit concerns. Cash needs to = run the buisness have now increased. The market perceives Enron as needing = more cash," said Barbis.=20 On Monday, Enron disclosed it is up against a deadline of Nov. 26 to delive= r collateral against the debt owed to a third party in one of its many part= nerships.=20 If not, the partner has the right to liquidate all of the assets of the par= tnership, which include a Brazilian natural gas company that Enron was coun= ting on selling to raise $250 million in cash.=20 Enron is working to make alternative payment arrangements, since it can ill= -afford to pay the debt now. Enron has already already maxed out its $3 bil= lion credit line, secured roughly $2 billion in loans and is looking for mo= re cash to stay afloat.=20 On Monday, the Houston-based company also reduced previously reported 2001 = third-quarter earnings by 3 cents per share and increased reported earnings= for the first 9 months of the year by a penny per share. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: Enron shares tumble on credit concerns. 11/21/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 21 (Reuters) - Enron Corp. shares tumbled 19 percent in openi= ng trade on Wednesday, amid concerns over the company's liquidity and growi= ng questions over whether the proposed takeover by Dynegy will go ahead.=20 Shares were down $1.33 to $5.66 in early trading on the New York Stock Exch= ange. Wall Street analysts said Enron is losing market share because of credit co= ncerns from its trading partners and questions over Dynegy Inc.'s takeover = offer. Enron warned on Monday it could be forced to pay by next week a $690= million debt triggered by a credit downgrade last week.=20 "The Dynegy deal will take a long time and a lot of things could happen ove= r that time period. Dynegy did their homework, but if they missed anything,= they have a number of exit opportunities," said Fulcrum Global Partners an= alyst Michael Barbis. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business Upgrades and Downgrades Rhonda Schaffler, Charles Kadlec 11/21/2001 CNNfn: Market Coverage - Morning (c) Copyright Federal Document Clearing House. All Rights Reserved. RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: Time now for upgrades and down= grades.=20 Salomon Smith Barney downgrades Microsoft (URL: http://www.microsoft.com/) = to neutral from outperform saying the company`s earnings estimates too aggr= essive in light of the economic conditions. Goldman Sachs, as we heard from Chris, removing three energy firms; Enron (= URL: http://.www.enron.com/) , Dynegy (URL: http://www.dynegy.com/) and Wil= liams (URL: http://www.williamsenergy.com/) , from the recommended list.=20 Dynegy was expected to buy the troubled Enron. It is still, but it`s rated = market perform now as is Enron. Williams rated market outperform. Goldman s= ays it`s concerned about Enron`s ability to recover from the loss of signif= icant business deals and sees no positive catalysts for the entire group la= rgely due to the problems in Enron.=20 On the upside, Deutsche Bank is raising Xerox (URL: http://www.xerox.com/) = to buy from market perform saying it`s pleased with the company`s turnaroun= d strategy. We`re going to talk about that in detail when we speak with the= analyst who made that call in just a moment.=20 First, we want to take a look at how these stocks are trading. Entire group= is down with the exception of Xerox. It`s up 15 cents.=20 Peter Ausnit is imaging analyst at Deutsche Bank Alex. Brown and joins us.= =20 And thanks for joining us here on MARKET CALL. What is it about Xerox you l= ike?=20 PETER AUSNIT, IMAGING ANALYST, DEUTSCHE BANK ALEX. BROWN: Well I think the = company`s really put its liquidity concerns behind it and now investors can= look at the long-term picture, which is much brighter.=20 CHARLES KADLEC, J&W SELIGMAN: Peter, it`s Chuck Kadlec. Good morning. Is th= is is a heroic recommendation here? Is this - should we consider this more = of a speculative investment or is this something that a conservative invest= or ought to be interested in?=20 AUSNIT: I think investors should be interested in this if, over the next se= veral quarters - in the near-term, the conditions are still quite difficult= but over the long-term it`s not that speculative. Xerox has a large instal= l base, a tremendous sales and service force and can probably return to ind= ustry standard margins.=20 KADLEC: As you say, this probably depends on management`s ability to execut= e here. Why do you believe this management is going to be able to execute t= heir strategy?=20 AUSNIT: Well their track records during the turnaround has been fairly stro= ng and the strategy has made a lot of sense. They`ve sold a lot of business= es. They`ve done most of the things they promised to do such as bring on ne= w third party equipment financing and they`re going to bring on a new CFO a= s well.=20 SCHAFFLER: Peter Ausnit of Deutsche Bank Alex. Brown, thanks for joining us= .=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: RESEARCH ALERT-Enron, Dynegy cut by Goldman. 11/21/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 21 (Reuters) - Goldman Sachs said on Wednesday it removed mer= ger partners Enron Corp. and Dynegy Inc. from its "recommended list" and do= wngraded the stocks to "market perform."=20 Goldman said it cut Enron's 2001 earnings estimate to $1.35 a share, and cu= t the 2002 estimate to 50 cents a share amid concerns about "new and major"= liquidity issues, and the company's ability to recover the business that h= as been lost. The firm said the cash infusion from Dynegy "appears inadequate to restore = the confidence of Enron customers."=20 It said Dynegy and Williams Cos Inc. have "excellent long-term prospects," = but valuations throughout the sector may be under pressure until Enron's is= sues are resolved.=20 Shares of Enron closed at $6.99 on Tuesday, while Dynegy closed at $41.70. = Shares of Williams closed at $29.26. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron Gets Extension on $690 Mln Note Due Next Week (Update1) 2001-11-21 12:38 (New York) Enron Gets Extension on $690 Mln Note Due Next Week (Update1) (Updates with amount of debt in fourth paragraph.) Houston, Nov. 21 (Bloomberg) -- Enron Corp., whose shares had dropped 92 percent this year amid a financial crisis, said lenders extended to mid-December the payment date on a $690 million note due next week. Enron, which agreed to be bought out by rival energy trader Dynegy Inc. in a transaction now valued at more than $23 billion, said earlier this week a drop in its credit rating may force it to repay the $690 million note. The repayment would strain cash reserves Enron needs to back its trading operations, investors and analysts said. The Houston-based company didn't say in its release who holds the note, which is owed by an affiliated partnership that owns Brazilian natural-gas assets and was backed by Enron. The note is held by a group of banks led by the Citibank unit of Citigroup Inc., Standard & Poor's said in a press release yesterday. Enron also is in discussions with other lenders on a restructuring of its debt, the company said in a statement distributed by PR Newswire. ``We believe the interests of Chase and Enron's other primary lenders are aligned in this restructuring effort,'' James Lee, vice president of JP Morgan Chase & Co., said in the Enron statement. ``We will work with Enron and its other primary lenders to develop a plan to strengthen Enron's financial position up to and through its merger with Dynegy.'' Morgan has been advising Enron on its merger with Dynegy. Enron said yesterday it may have to pay $9.15 billion in debt due by 2003, suggesting the company may run out of cash before the merger closes. Dynegy has said the merger should close before the end of the third quarter of 2002. Enron said in a regulatory filing that it has less than $2 billion in cash or credit lines. Shares of Enron, the most active stock in U.S. trading, fell $1.79, or 23 percent, to $5.20 in midday trading. Before the announcement that it had renegotiated the $690 million note, its shares had fallen as much as 42.78 percent, the lowest level in more than a decade. Dynegy fell $2.50, or 6 percent, to $39.20. Shares of ChevronTexaco Corp., which owns 26 percent of Dynegy, rose 49 cents to $87.02 Enron, Dynegy Shares Fall 2nd Day on Threat to Buyout (Update2) 2001-11-21 11:49 (New York) Enron, Dynegy Shares Fall 2nd Day on Threat to Buyout (Update2) (Adds analyst comment in fourth paragraph.) Houston, Nov. 21, (Bloomberg) -- Shares of Enron Corp., the biggest energy trader, and Dynegy Inc. fell for a second day on concern Enron may run out of cash before its takeover by Dynegy can be completed. Enron tumbled as much as 33 percent, and Dynegy dropped as much as 6.7 percent. Enron's bonds also fell. The company's 6.4 percent notes maturing in July 2006 were bid at 62 cents and offered at 66 cents, traders said. They sold at about 72 cents yesterday. Institutional investors sold shares of both companies after Goldman, Sachs & Co. analyst David Fleischer downgraded them to ``market perform'' from his ``recommend'' list, other analysts said. The Dynegy bid ``did not eliminate customer concerns about Enron's liquidity and long-term viability,'' Goldman Sachs said in its report. ``We now believe that it will be difficult for Enron shares to generate strong returns until it is clear that Enron can operate on a normal basis without having to provide cash or letters of credit to back routine transactions.'' Fleischer also cut his 2002 profit estimate for Enron to 50 cents from $1.35. Enron had been expected to make $1.90 next year, the average estimate of 16 analysts surveyed by Thomson Financial/First Call. Enron said Monday it may have to pay $9.15 billion in debt due by 2003, suggesting the Houston-based energy trader may run out of cash. The company said in a regulatory filing it has less than $2 billion in cash or credit lines. It also surprised some investors by saying a drop in its credit rating may force it to repay a $690 million note next week. Enron said yesterday the terms of the notes, which it guaranteed for an affiliated partnership that owns Brazilian natural-gas assets, are being renegotiated and that it had a ``verbal indications'' that the maturity of the notes will be extended. The company's dealings with affiliated partnerships led to earnings restatements, credit-rating cuts, a federal investigation and a management shakeup. Dynegy plans to complete its buyout by October, and Enron may have to ask lenders to restructure payment schedules. Mirant Corp., Aquila Inc. and other big energy traders are doing fewer transactions with Enron as concerns increase about its credit rating and ability to finance daily business, executives said yesterday. Enron's stock fell $2.28, or 32 percent, to $4.71 in late-morning trading. Earlier, it touched $4.67, its lowest price in more than a decade. The shares have plummeted 92 percent this year. Dynegy fell $2.70, or 6.5 percent, to $39.00. The shares had dropped 26 percent this year. U.S. Equity Movers: Cardiac Science, Enron, Guidant, TriQuint 2001-11-21 10:24 (New York) U.S. Equity Movers: Cardiac Science, Enron, Guidant, TriQuint New York, Nov. 21 (Bloomberg) -- The following is a list of companies whose shares are moving in U.S. markets Wednesday, Nov. 21. The stock symbol is in parentheses after the company name. Major Moving Stocks: Enron Corp. (ENE) fell $1.54, or 22 percent, to $5.45 and traded as low as $5.44. The energy trader shares fell for a second day on concern Enron may run out of cash before its takeover by Dynegy Inc. (DYN) can be completed. Other Moving Stocks: Cardiac Science Inc. (DFIB) rose 51 cents, or 16 percent, to $3.65 and traded as high as $3.89. The maker of equipment used to restore a normal heartbeat to patients in cardiac arrest said the San Diego City Council approved an agreement for the company to deploy automated external defibrillators in the region. The company made the announcement in a press release distributed by PR Newswire. Officials couldn't immediately be reached to comment. Guidant Corp. (GDT) rose $4.18, or 8.9 percent, to $51 and traded as high as $51.50. The maker of products to treat heart disease said a study showed implantable defibrillators cut deaths by 30 percent in heart-attack survivors, potentially expanding the $1.9 billion market for the product. Portal Software Inc. (PRSF) fell 34 cents, or 15 percent, to $1.89 and traded as low as $1.64. The provider of Internet-billing programs said in a release distributed by Business Wire that it forecasts a loss of 9 cents to 10 cents a share in the fourth quarter ending Jan. 31. The company is expected to lose 11 cents, the average estimate of analysts surveyed by First Call. Officials couldn't be reached to comment. TriQuint Semiconductor Inc. (TQNT) fell $1.99, or 10 percent, to $17.56 and traded as low as $17.35. The communications- equipment chipmaker said it would report fourth- and first-quarter results at the low end of previous forecasts. TriQuint was cut to ``neutral'' from ``buy'' in a report by U.S. Bancorp Piper Jaffray Cos. analyst Samuel May. Tickers: ENE DFIB GDT TQNT Money flows, the difference between the value of trades made at a higher price than the previous trade and those made at a lower price, may also appear for some stocks. These inflows and outflows show whether people are willing to pay more for a stock that's rising, or to sell a stock that's falling for less. If not it's a signal the share price may soon change direction. Enron, Dynegy Shares Fall 2nd Day on Threat to Dynegy Bid 2001-11-21 09:57 (New York) Enron, Dynegy Shares Fall 2nd Day on Threat to Dynegy Bid Houston, Nov. 21, (Bloomberg) -- Shares in Enron Corp. and Dynegy Inc. fell for a second day on concern Enron may run out of cash before its takeover by Dynegy can be completed. Enron fell $1.37, or 20 percent to $5.62 in early trading. Dynegy fell $1.95, or 4.7 percent, to $39.75. Enron bonds extended declines. The company's 6.4 percent notes maturing in July 2006 were bid at 60 cents and offered at 68 cents, traders said. They traded at about 72 cents yesterday. Enron Corp. Cut to `Market Perform' at Goldman Sachs 2001-11-21 08:46 (New York) Princeton, New Jersey, Nov. 21 (Bloomberg Data) -- Enron Corp. (ENE US= ) was downgraded to ``market perform'' from ``recommend list'' by analyst Dav= id N Fleischer at Goldman, Sachs & Co. Earnings estimates: Period Previous estimate New estimate per share (USD) FY 2001 1.80 1.35 FY 2002 2.15 0.50 Enron Says Lenders Extend $690 Mln Note Payment to Mid-December 2001-11-21 12:10 (New York) Enron Says Lenders Extend $690 Mln Note Payment to Mid-December Houston, Nov. 21 (Bloomberg) -- Enron Corp. said its lenders extended to mid-December the payment date on a $690 million note, giving the debt-laden energy trader more time to restructure its finances. Enron said it's still committed to a takeover by Dynegy Inc. The company said it secured the remaining $450 million of a previously announced $1 billion credit line. Enron shares pared losses after the announcement of the debt extension. The stock fell $1.54, or 22 percent, to $5.45 in midday trading. Plunge Says End Is Near at Enron By Peter Eavis Senior Columnist 11/21/2001 12:32 PM EST Enron (ENE :NYSE= - news - commentary= - research - analysis) shares plunged a second straight day Wednesday as fear mo= unted that the struggling energy trader's bailout merger plan will unravel.= =20 A potentially lethal cash crunch appears to be gripping Enron, even though = its planned acquirer Dynegy (DYN :NYSE - news - commentary - research - analysis) has injected $1.5 billion of cash, = and banks have opened new credit lines. An Enron collapse would cause weeks= of dislocation in the energy markets that would damage other energy trader= s, and it would cause big losses for the Houston company's creditors.=20 Just before noon EST, Enron announced in a press release that it had extend= ed to mid-December a $690 million obligation that was due next week. It als= o said that it had agreed with its bankers to draw down the remaining $450 = million of a previously announced $1 billion secured credit line that has J= .P. Morgan Chase as its lead banker.=20 Investors have been fleeing Enron since the company last month disclosed a = $1.2 billion writedown to unwind some related-party hedging transactions. T= he Securities and Exchange Commission is probing Enron deals with related p= arties. The October disclosure made investors uneasy because it suggested t= he company hadn't been forthcoming about the true state of its finances, an= d it showed that Enron was facing serious liquidity problems.=20 Those fears were temporarily quieted earlier this month when Enron agreed t= o be acquired by smaller rival Dynegy. But Enron's disclosure Monday that i= t faces additional earnings and financing troubles renewed the rush to the = exits. In the Wednesday release, Enron CEO Ken Lay said his company was sti= ll committed to the merger: "We continue to believe that this merger is in = the best interests of our shareholders, employees and lenders." Dynegy late= r issued a press release indicating it is "continuing our confirmatory due = diligence" regarding the merger. Neither Enron nor Dynegy returned calls se= eking comment.=20 After plunging 23% Tuesday to $6.99, Enron was down a staggering 34% at one= point Wednesday. It moved slightly higher after the midday press release t= o trade at $4.90. Enron shares have lost more than 80% of their value since= the company issued its third-quarter earnings release last month. Dynegy d= ropped $2.44, to $39.26, though it remains substantially above premerger le= vels.=20 At the heart of Enron's trouble is the sense that the company isn't letting= on the full extent of its troubles. The selloff in Enron shares began in e= arnest Oct. 16, when the company disclosed in an earnings conference call t= hat it would take a $1.2 billion writedown to unwind some related-party tra= nsactions. Critics of the company said those deals, in which the company di= d business with separate entities involving Enron managers, raised serious = ethical and disclosure issues.=20 The Dynegy merger was taken as a vote of confidence for Enron, since as a b= ig trading partner Dynegy would appear to have a solid grasp of Enron's sit= uation. As a result, shares in both companies rallied after the deal's anno= uncement. But Monday's disclosure that Enron faced $690 million in bond pay= ments next week reignited worries that the company faced steeper challenges= than it has detailed. According to a Merrill Lynch report cited in The New= York Times Wednesday, Dynegy wasn't aware of the $690 million obligation. = Critics of the deal wondered whether Enron had told Dynegy about all its ob= ligations. =20 Liquidity fears have also been rekindled by information contained in a fili= ng of quarterly results that show the company consumed as much as $5 billio= n of cash in recent weeks. By the end of 2002, Enron has to find around $9 = billion to pay back various obligations. It had $1.2 billion in cash on han= d as of Nov. 16, according to the filing.=20 Tellingly, Dynegy shares haven't plunged along with Enron, suggesting that = investors see a collapse of the merger as catastrophic for Enron but not fo= r Dynegy. At current levels, Enron shares are trading at more than a 50% di= scount to the Dynegy offer.=20 J.P. Morgan has taken a leading role in helping Enron. It has lent funds an= d it helped restructure the $690 million obligation. The bank's stock was d= own 78 cents to $38.62. "We will work with Enron and its other primary lend= ers to develop a plan to strengthen Enron's financial position up to and th= rough its merger with Dynegy," said James Lee, a top banker at Morgan, in t= he Enron release.=20 From CBS.MarketWatch.com, online at: DYNEGY, ENRON SAY MERGER TO PROCEED By Myra P. Saefong 1:52 PM ET Nov 21, 2001 WASHINGTON (CBS.MW) -- Merger partners Enron and Dynegy restated their commitment Wednesday to completing a deal, on the heels of embattled Enron's announcement that its lead lender granted it more time to pay off a $690 million note set to come due next week. "We are continuing our confirmatory due diligence and working to accelerate the regulatory approvals required to complete the merger," said Chuck Watson, Dynegy's chairman and chief executive, in a statement. Shares of Enron (ENE) recovered slightly in afternoon trading but remained under pressure. On heavy volume, the stock -- which had touched $4 earlier in the session -- was down $1.83 to trade at $5.16, a new 10-year low. Some 84 million shares had changed hands. Enron declined 23 percent Tuesday after the company revealed the upcoming debt deadline and restated its earnings. Meanwhile, Dynegy shares lost $1.83 to stand at $39.87. Enron said that the lead bank on the $690 million debt agreed to extend the maturity date to mid-December, which will give the company time to restructure the facility, and added it expects to further restructure its debt. "We ... believe we can identify a mutually beneficial restructuring to enhance our cash position, strengthen our balance sheet, and address upcoming maturities," said Jeff McMahon, chief financial officer, in a statement. J.P. Morgan Chase & Co. said it and other lenders are committed to helping Enron improve its financial position. Also, Enron reaffirmed its commitment to a merger with Dynegy and said it closed on a previously announced $450 million line of credit from J.P. Morgan, collateralized by the company's Northern Natural Gas Co. Enron -- which is being acquired by its smaller rival Dynegy (DYN) at a fire-sale price -- revealed in a Securities and Exchange Commission filing Monday that it had to pay off or refinance $690 million in debt obligations by next Monday or risk triggering nearly $4 billion in additional payments. If Enron had missed that deadline and didn't post collateral, investors had the right to demand immediate liquidation of the assets of one of Enron's limited partnerships, the unusual business entities at the center of the company's murky transactions currently under investigation. The SEC filing of Monday also contained yet another restatement of financial results on the heels of a similar filing that disclosed more than four years of restated earnings figures. Earlier Wednesday, Goldman Sachs lowered its rating on Enron's stock to "market performer" from its "U.S. recommended list," citing "major" liquidity issues and concerns over whether the company can recover the business it has lost. CIBC World Markets also cut Enron to a "hold" from a "buy." Commerzbank weighed in Wednesday, saying Enron's viability is in doubt. "We believe the filing clearly shows that Enron remains in a precarious financial position and its status as a going concern is much in doubt," analysts Andre Meade and Andrew Smith wrote. "It appears that Enron's situation could worsen in a number of ways." Though Enron's most recent disclosures shed more light on the fiscal situation, Meade and Smith characterized the information as "piecemeal." "It appears that the full extent of Enron's problems is not currently known," they said in a note, cautioning clients against investing in Enron.