Message-ID: <5136240.1075862351959.JavaMail.evans@thyme> Date: Tue, 27 Nov 2001 09:55:52 -0800 (PST) From: elizabeth.tilney@enron.com To: pr <.palmer@enron.com>, j..kean@enron.com Subject: Enron Corp.: Dynegy Confirms -3: Deal May Be Cut More Than 40% -WSJ Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Tilney, Elizabeth </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=CE09D94F-81A63D4D-86256737-823409> X-To: Palmer, Mark A. (PR) </O=ENRON/OU=NA/CN=RECIPIENTS/CN=MPALMER>, Kean, Steven J. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=SKEAN> X-cc: X-bcc: X-Folder: \SKEAN (Non-Privileged)\Kean, Steven J.\Deleted Items X-Origin: Kean-S X-FileName: SKEAN (Non-Privileged).pst ---------------------- Forwarded by Elizabeth Tilney/HOU/EES on 11/27/2001 11:54 AM --------------------------- Peggy Mahoney 11/27/2001 11:45 AM To: Elizabeth Tilney/HOU/EES@EES cc: Subject: Enron Corp.: Dynegy Confirms -3: Deal May Be Cut More Than 40% -WSJ Doesn't have the facts about 401K. Need to move fast. ---------------------- Forwarded by Peggy Mahoney/HOU/EES on 11/27/2001 11:45 AM --------------------------- djcustomclips@djinteractive.com on 11/27/2001 10:18:51 AM Please respond to nobody@mail1.djnr.com To: 1529@WCTOPICS.djnr.com cc: Subject: Enron Corp.: Dynegy Confirms -3: Deal May Be Cut More Than 40% -WSJ Dynegy Confirms -3: Deal May Be Cut More Than 40% -WSJ 11/27/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) Earlier Tuesday, a report in The Wall Street Journal quoted people familiar with the matter who said Enron and Dynegy were in advanced discussions to cut the price of the all-stock transaction by more than 40% to about $5 billion. Sousa, the Dynegy spokesman, didn't comment on the newspaper report. Dynegy shares recently traded at $40, up 75 cents, or 1.9%, while Enron shares changed hands at $3.94, down 7 cents, or 1.7%. Under the original terms of the transaction, Enron shareholders are to receive 0.2685 of a Dynegy share, or $10.78, for each share outstanding, or about $9.14 billion, based on Dynegy's recent stock price. According to the Journal report, the new terms could be below 0.15 of a Dynegy share. The deal is critical for Enron, which also simultaneously carrying out talks to receive between $500 million to $1 billion in additional funding to support its operations, while carrying on negotiations to restructure its debt, which totals about $13 billion. While Dynegy has already provided Enron with a cash infusion, it is uncertain how long Enron's current funds will allow it to remain solvent. Meanwhile, a third employee lawsuit has been filed against Enron over lost 401(k) retirement savings due to the recent collapse of Enron's stock, which has declined more than 90% in the trailing 12 months. The suit claims Enron "locked down" the plan, which prevented employees from being able to sell the shares, and seeks $850 million for plan losses. Although the other recently filed employee suits didn't disclose the amount of compensation the plaintiffs are seeking, it is possible the suits seek a similar level of damages, a CreditSights report said. If this is true, the CreditSights report said, it is possible the clause that allows Dynegy to walk away from the deal if the liabilities from "pending"' or "threatened" litigation may exceed $3.5 billion may be invoked. In addition, to the employee lawsuits, more than a dozen shareholder suits have been filed against Enron. -By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com Folder Name: Enron Corp. Relevance Score on Scale of 100: 100 ______________________________________________________________________ To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.) ______________________________________________________________________ Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved