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Date: Fri, 27 Aug 1999 03:01:00 -0700 (PDT)
From: louis.soldano@enron.com
To: larry.campbell@enron.com
Subject: story
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fyi
---------------------- Forwarded by Louis Soldano/ET&S/Enron on 08/27/99 
09:59 AM ---------------------------


Bret Reich
08/27/99 07:25 AM
To: Louis Soldano/ET&S/Enron@Enron
cc:  
Subject: story

This is real comforting!



   Enron/TransCanada -2: Analyst Calls Deal 'Unlikely'

   Dow Jones Energy Service - 08/26/1999

   (Copyright (c) 1999, Dow Jones & Company, Inc.)

   HOUSTON (Dow Jones)--Enron Corp. isn't pursuing a purchase of TransCanada 
Pipelines Ltd., a
   spokesman for Enron said Thursday. 

   "There's absolutely no truth to the rumor that Enron wants to buy 
TransCanada," Mark Palmer, a
   spokesman for Enron, told Dow Jones Newswires. 

   TransCanada operates a natural gas pipeline that runs from Alberta to 
eastern Canada. It also
   operates the Nova Gas system, an intraprovincial gas gathering and 
transportation pipeline in
   Alberta. 

   Ordinarily Enron could not comment on rumors about a possible acquisition 
because of Securities
   and Exchange Commission rules, Palmer said. But the company can comment if 
such rumors are
   having an effect on the stock price, he added. The rumor has circulated 
since last month. 

   Raymond Niles, an analyst who follows Enron for Schroders&Co. Inc, put out 
a report Thursday
   morning attributing "recent (Enron) stock price weakness" to the rumor. 

   Niles' report said it would be "highly unlikely" that Enron would buy 
TransCanada. 

   Enron's gas pipeline business accounts for less that 15% of the company's 
total earnings, Niles
   said. Enron's management has said in the past that it doesn't "need to own 
its existing pipeline
   system to grow its core energy marketing business." 

   In the last two years, he said, Enron has moved to reduce its interest in 
non-core businesses such as
   gas pipelines. 

   Enron is also minimizing its investments in hard assets, Niles said in his 
report. The company has
   made investments in strategically located power generating assets, but 
"it's plan is to keep capital
   investments to a minimum ... and monetize existing assets."