Message-ID: <2340253.1075846347534.JavaMail.evans@thyme> Date: Mon, 30 Oct 2000 00:20:00 -0800 (PST) From: ann.schmidt@enron.com To: mark.palmer@enron.com, karen.denne@enron.com, meredith.philipp@enron.com, steven.kean@enron.com, elizabeth.linnell@enron.com, eric.thode@enron.com, laura.schwartz@enron.com, jeannie.mandelker@enron.com, mary.clark@enron.com, damon.harvey@enron.com, keith.miceli@enron.com Subject: Enron Mentions Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Ann M Schmidt X-To: Mark Palmer, Karen Denne, Meredith Philipp, Steven J Kean, Elizabeth Linnell, Eric Thode, Laura Schwartz, Jeannie Mandelker, Mary Clark, Damon Harvey, Keith Miceli X-cc: X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Heat wave X-Origin: KEAN-S X-FileName: skean.nsf California Adopts Variable Pricing, Raising Ire of Generators, Traders The Wall Street Journal, 10/30/00 Enron Offers Cash To Help Azurix Take Itself Private The Wall Street Journal, 10/30/00 Companies: U.S. Companies The Wall Street Journal Europe, 10/30/00 Wessex switch likely The Times of London, 10/28/00 Enron water unit could go private under loan plan Houston Chronicle, 10/28/00 Quietly, Bush's team talks about transition; Plenty of folks in Austin would love to follow Bush to D.C. Austin American-Statesman, 10/28/00 Dynegy: Calif Price Caps Will Compromise Elec Reliability Dow Jones Energy Service, 10/28/00 SEC Filing Shows 3rd Parties Contacted Enron About Azurix Dow Jones News Service, 10/27/00 Enron offers to buy out Azurix Financial Times, October 27 2000 California Adopts Variable Pricing, Raising Ire of Generators, Traders By Rebecca Smith Staff Reporter of The Wall Street Journal 10/30/2000 The Wall Street Journal A4 (Copyright (c) 2000, Dow Jones & Company, Inc.) LOS ANGELES -- In the latest attempt to fix California's troubled deregulated energy market, officials adopted a unique variable-pricing plan that already is being criticized by power generators and traders as unworkable and praised by utilities and consumers as much needed protection against gouging. Under the plan, adopted late last week by the governing board of the California Independent System Operator, or ISO, a quasipublic agency responsible for maintaining electricity reliability in the state, the cap on wholesale power will be reset hourly from about $65 per megawatt hour at low-demand times to no more than $250 an hour at periods of high demand. It was the third time this year that officials effectively lowered the price cap on wholesale electricity in a bid to contain -- so far unsuccessfully -- soaring total power costs. The move underscores the chaotic atmosphere prevailing in California's power market after a two-year-old experiment in deregulation has come undone. In other deregulated markets such as New York and New England, prices are capped at $1000 per megawatt hour, which are intended to be low enough to prevent market abuse but high enough to give generators incentive to build new plants. California's system was supposed to work the same way. But because utilities in California divested themselves of the bulk of their plants but weren't allowed to lock in fixed-price supply contracts, unlike in the other markets, merchant generators have had much greater sway over prices here on the spot market, where most power trades. During the first nine months of the year, the average price of wholesale electricity was $90 per megawatt hour in California, triple the price of a year earlier. Even on cool days in October, the price generally has remained above $100 per megawatt hour. California utilities have lost money on those power purchases because their customers' rates are frozen at $54 to $65 per megawatt hour, far lower than the average price utilities have had to pay for that power. The deficits exceeded $5 billion in the June-to-September period. California utilities buy the power used by their customers from the state-sanctioned auctions administered by the ISO and a sister organization, the California Power Exchange. In New York and New England, by comparison, less than 20% of power is purchased from the spot markets because utilities there were able to sign the fixed-price contracts, which California utilities weren't allowed to do. The price-cap decision passed last week by a vote of 13 to 10, primarily with support from utilities and board members representing consumer interests. It was pushed aggressively by Pacific Gas & Electric Co. and Southern California Edison, the state's two big investor-owned utilities that have gotten caught in the price-spike vise this year. Some ISO members say they had no choice but to support the measure to ratchet down price caps. "We're going after the windfall profits," said S. David Freeman, general manager of the Los Angeles Department of Water and Power, who voted for the measure. "What we've got now is a market accustomed to ripping off the consumer. This can't be allowed to go on." But other experts said the hasty measure may make California's problems even worse. "The short-term regulatory fix is always to fix prices," said Pam Prairie, director of the Institute of Public Utilities at Michigan State University in East Lansing. "But there's a real danger you'll set prices too low and make your supply problems even worse." Other economists agreed. "At best, this is poorly administered cost-based regulation," said Frank Wolak, an economics professor at Stanford University who sits on an independent market-monitoring committee at the ISO. "At worst, it creates all sorts of perverse market incentives." For example, it may increase the problem of "megawatt laundering" on hot days in which in-state generators sell power to out-of-state customers who then sell it back into the state, effectively bypassing the cap. Likewise, it could encourage generators to build new plants outside of California, rather than where they are needed near its major cities, also to avoid the cap. In the end, it could increase stresses to the state's already overburdened transmission system. In fact, the decision already has brought to a halt the state's forward electricity market, which allows wholesale customers to sign contracts for power they will use in the future. The market had been trading as much as 1,000 contracts a week. On Friday, there was practically no activity. "This decision shows the height of lunacy," said Rick Shapiro, a managing director at Enron Corp., the giant Houston-based energy trader. Mr. Shapiro said Enron and other generators will file appeals at the Federal Energy Regulatory Commission asking that the new pricing formula be rescinded. It is possible the FERC may throw out the pricing formula anyway. It is expected to issue a major order on Nov. 1 directing changes in California's market structure. That order will include its determination of the effectiveness of price caps. It also is expected to judge the merits of the governance structure at the ISO, which has lately been marked by infighting. Recently, consumer groups have charged that the ISO board has put the business interests of its members ahead of members' fiduciary duty to California residents. The most recent price-cap measure was approved over the objections of executives at the ISO whose job it will be to implement the formula. ISO Chief Executive Terry Winter said the measure is flawed because it doesn't take into account the amount of power available to the California market. Mr. Winter fears the caps will place the state at a disadvantage relative to neighboring states with no price caps. About 11 states are electrically interconnected in the West, meaning power can be moved between them and chase the highest prices. "We keep getting accused of making our market too complicated," Mr. Winter said. "Then along comes this proposal" with caps that would adjust repeatedly throughout the day, depending on demand. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Offers Cash To Help Azurix Take Itself Private By Rebecca Smith Staff Reporter of The Wall Street Journal 10/30/2000 The Wall Street Journal A12 (Copyright (c) 2000, Dow Jones & Company, Inc.) Enron Corp. offered to lend Azurix Corp., an Enron spinoff, $275 million so that it could take itself private. Enron, which has been frustrated with the global water company's performance, suggested Friday that public shareholders receive a cash offer of $7 a share for their Azurix stock. While nearly double the stock's value prior to the offer, the suggested price nevertheless was far below the $19 at which Azurix made its debut in 1999. An Azurix spokeswoman said the board, on which Enron has seats, had not yet decided how to treat the Enron offer. An Enron spokesman said that taking the company private would "give us more opportunity to directly affect our investment." In 4 p.m. New York Stock Exchange composite trading Friday, Azurix soared $3 to $6.56 in heavy trading. Azurix had hoped to create a splash by doing to the water business what Enron had done to the energy business -- increase competition and provide trading skills capable of creating new financial products out of old commodities. But Azurix stumbled, nearly from the outset. Deregulation of the water business and government privatizations of water systems, on which it was counting, were slow to come, crimping growth opportunities and profit. And Enron, accustomed to higher, faster returns, grew impatient with the capital-intensive water business. The company's first chief executive, Rebecca Mark, a onetime head of Enron's international division, resigned in the summer with the agreement of Enron executives, who said it was time for new leadership. The incoming chief executive, John Garrison, said he would look for buyers for some of the company's businesses; he was unavailable to comment Friday. Ms. Mark was believed to be considering making an offer for some of those businesses, herself. She declined a request for an interview. In its letter to Azurix officers, Enron said the water company received four offers from prospective suitors after Ms. Mark's departure, the best of which came from an unidentified bidder who offered $7 a share and went through a lengthy due-diligence process before backing down, apparently spooked by Azurix's cash flow, capital structure, tax considerations and some securities litigation. In its proposal letter, made public Friday, Enron said it concluded "that there is no other buyer willing to pay the $7" and so proceeded with its own offer. But Enron said it won't try to limit Azurix's ability to negotiate a better deal with others, should they come forward. Finally, Enron noted that Azurix had considered various partial or full-liquidation alternatives but said they didn't seem likely to produce more than $7 a share. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Companies: U.S. Companies 10/30/2000 The Wall Street Journal Europe 5 (Copyright (c) 2000, Dow Jones & Company, Inc.) Enron Offers Loan to Azurix Enron Corp. offered to lend Azurix Corp., an Enron spinoff, $275 million (327.6 million euros) so that it could take itself private. Enron, which has been frustrated with the global water company's performance, suggested Friday that public shareholders receive a cash offer of $7 a share for their Azurix stock. While nearly double the stock's value prior to the offer, the suggested price nevertheless was far below the $19 at which Azurix made its debut in 1999. (Staff) Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Business Wessex switch likely Adam Jones in New York 10/28/2000 The Times of London News International 2W 64 (Copyright Times Newspapers Ltd, 2000) Wessex Water's American parent company is likely to be taken private after a disastrous 14-month spell as a quoted company. Wessex, which provides water services to the South of England, was bought by Azurix in 1998 for Pounds 1.6 billion. Azurix wanted to use Wessex's expertise in privatised water supply to build a global business. However, since listing at $19 a share in June last year, Azurix stock has gone into freefall, closing at less than $4 earlier this week. Azurix slumped because it drastically misjudged the number of privatisation opportunities. It emerged last night that Enron, the Texan energy and trading company that is Azurix's biggest shareholder, has taken the unusual step of offering to lend Azurix $275 million (Pounds 190 million) to buy its publicly held shares, thereby taking it private. The Enron proposal would value Azurix at about $800 million or $7 per share - 63 per cent less than the IPO price. Enron would control Azurix and Wessex Water if it went private. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. BUSINESS Enron water unit could go private under loan plan NELSON ANTOSH Staff 10/28/2000 Houston Chronicle 3 STAR 1 (Copyright 2000) Enron offered Friday to lend Azurix, its struggling water affiliate, about $275 million so Azurix can go private by purchasing 38.6 million shares that are publicly traded. The deal would have Azurix buying back its stock at $7 per share, about double what the shares were trading for Thursday. That's a big comedown for Azurix shares, which sold for $19 each when the Houston company went public in June 1999. The maneuver technically can be called a "take-under," said analyst Carol Coale of Prudential Securities in Houston. She also described it as Enron's least painful solution for what to do with the venture that never lived up its ambitious plans. "Nothing about Azurix has been positive for Enron, in my view," said Coale. "This is a solution to a problem." Azurix spokeswoman Diane Bazelides said its board is studying Enron's proposal. She added that it was too early to comment on the offer because the proposal's structure had not been outlined. Enron imposed no deadline for a decision by Azurix, but reserved the right to withdraw the offer if Azurix's position with prospective customers and employees deteriorated. One of Enron's conditions is that Azurix not sell any major assets before the buyout. The deal would not change Enron's large stake in Azurix, said Palmer. It owns a third, while the other third is owned by the Atlantic Water Trust, in which Enron owns a 50 percent voting interest. The proposal's advantages include giving public shareholders a premium to the market price, said Enron spokesman Mark Palmer. The common stock of Azurix zoomed Friday on the news, gaining $3 to close at $6.56 on the New York Stock Exchange. Becoming a private company would give Azurix management greater flexibility in restructuring. Coale said it would reduce Azurix's general and administrative costs, helping it to bid against lower- cost foreign competition, particularly two big French companies. Azurix's high cost structure has been its primary problem, she said. Azurix has been looking at cost and strategies ever since it got a new president and chief executive on Aug. 25, said Bazelides. That was the date that Rebecca Mark resigned as Azurix's high-profile chairman and chief executive. Enron and Azurix have been looking at "strategic alternatives" for nine months, J. Mark Meets, Enron's executive vice president for corporate development, said in a letter filed with the Securities and Exchange Commission. One alternative was selling the company, he said. That didn't work out because the offers from three companies didn't exceed $4 per share. The fourth potential buyer said it would consider offering $7 per share, said Meets. But that suitor backed out, citing reasons like cash flow, complexity of the capital structure, tax considerations and pending securities litigation. "We are obviously quite disappointed by this most recent turn of events," Meets said in the letter. "However, we strongly believe that there is no other buyer willing to pay the $7 per share initially proposed (but later withdrawn) by the fourth bidder." Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Quietly, Bush's team talks about transition; Plenty of folks in Austin would love to follow Bush to D.C. Ken Herman American-Statesman Capitol Bureau Chief 10/28/2000 Austin American-Statesman A1 (Copyright 2000) Not long ago, at a glossy wooden table in a Texas Capitol office, two of Gov. George W. Bush's high-level appointees discussed one of the key issues in state government these days. It involved the relative merits of White House posts that could be available to the two appointees if Bush becomes president. Asked this week whether it's a common topic around the Capitol, one of the appointees gestured to the anteroom of his office and made a motion indicating that even the midlevel folks have Washington on their minds. Near the banks of the Colorado, Potomac Fever is a near-epidemic. And though it is political faux pas to be too open about doing White House transition planning before Election Day, be assured it is going on at Bush headquarters, where top officials are cognizant of the fine line between looking too confident now and looking too unprepared later. The candidate himself -- as well as his top aides -- steers clear of transition talk. When asked who might wind up in his Cabinet, Bush looks backward instead of forward, saying that his selection of Dick Cheney as his running mate should offer a glimpse of the kind of people who would wind up in his administration. The transition work, such that it is, is under the aegis of longtime Bush friend and aide Clay Johnson, who began as head of the gubernatorial appointments office and now serves as chief of staff. Johnson said nobody has been interviewed for any Washington post, but he has compiled a file of folks who are interested in serving in a Bush administration. Johnson also has been reading up on previous transitions -- ones that went well and ones that didn't. His preliminary conclusion is that the outgoing administrations are generally helpful and supportive, even if they were ousted by the incoming administration. It's the incoming administrations that can make the mistakes, he said. There is no shortage of think tanks that have think-tanked the topic. Back in August, the Heritage Foundation, based in Washington, issued a transition handbook titled "The Keys to a Successful Presidency." "Though we really don't expect either campaign to talk about it (and would discourage them from doing so), the message here is it's time to start planning for a possible presidential transition, quietly, well behind the scenes, but with the understanding that the preparation done during the next 70 or so days, and the work done in the 70 or so days that follow (between the election and the inauguration) will very well determine the initial success or failure of the next administration," Herbert Berkowitz, a foundation vice president, said in releasing the study. All indications are that the Bush team has been following the advice, with Johnson at the helm. Johnson cautions against expectations that a Bush administration would be overloaded with Texans. "It's the United States of America, not the United States of Texas," he said. Despite that caveat, there is no shortage of Texans who are considered shoo-ins to fill some of the thousands of slots Bush could offer if he wins. Johnson confirms that he is very interested in a Washington job. Early speculation among Bush aides makes Johnson a potential leading contender for head of personnel at the White House. Karen Hughes, Bush's communications director since his 1994 gubernatorial campaign, is expected to become Bush's press secretary if he wins the White House. Karl Rove, Bush's longtime political guru, also will be on board, though he could wind up with an out-of- the-White-House post, perhaps at the Republican National Committee. Not as certain is the potential future for Joe Allbaugh, who is part of the "iron triangle" of top advisers -- along with Rove and Hughes -- who have been on board with Bush since the 1994 campaign. Allbaugh serves as manager of the presidential campaign and previously served as chief of staff in the governor's office. Capitol speculation indicates Allbaugh could decide to skip a White House post, possibly in favor of a lobbying job, if he is not tapped as chief of staff. That post could go to Don Evans, a longtime Bush friend who headed the megasuccessful fund-raising effort for the presidential campaign. However, not everyone has Potomac Fever. For example, Terral Smith, Bush's legislative director, said he will stay in Austin to lobby. In addition to the speculation about appointees, the approaching election has sparked talk about when Bush might leave office if he wins. Under the U.S. Constitution, he could remain governor until he has to become president on Jan. 20. Much more likely, however, is that Bush would leave office sooner than that, perhaps as soon as two or three weeks after the Nov. 7 election, if he wins. That could cause a housing problem for Bush, whose main residence is the Governor's Mansion, which comes as a free perk of the job. The Bushes have a home under construction at their ranch in Crawford, near Waco. The ranch also has a smaller house in which the Bushes now spend weekends. Not out of the question is that Bush could work out an arrangement with Lt. Gov. Rick Perry, who would become governor if Bush resigns, to remain in the Governor's Mansion for several weeks after he leaves office. If the race among Texas senators to replace Perry as lieutenant governor complicates the timing of the resignation, Bush could stay in the governor's office a little longer, but no later than the first week of January. After all, he will want to give Perry time to bask in his gubernatorial inauguration before the Legislature convenes Jan. 9. No matter when Bush resigns, confidantes believe he might use his Crawford ranch for interviews with potential top-level appointees, including Cabinet members. You may contact Ken Herman at kherman@statesman.com or 445-1718. Washington buzz A look at Bush allies expected to get appointments in a Bush administration: * Texas Secretary of State Elton Bomer * State Rep. Tom Craddick, R-Midland * Public Safety Commission Chairman Jim Francis of Dallas * Texas Railroad Commissioner Tony Garza* Texas Supreme Court Justice Al Gonzales * Former Dallas ISD board President Sandy Kress * Kenneth Lay of Houston, chief executive officer of Enron * Ralph Marquez of Texas City, member of the Texas Natural Resource Conservation Commission * Vance McMahan of Austin, a policy adviser in the governor's office * Harriet Miers of Dallas, Bush's personal lawyer and former appointee to the Texas Lottery Commission * Pat Oxford, Houston lawyer and member of the University of Texas System Board of Regents * Pat Wood of Austin, chairman of the Texas Public Utility Commission * Margaret La Montagne, the governor's education adviser Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Dynegy: Calif Price Caps Will Compromise Elec Reliability 10/27/2000 Dow Jones Energy Service (Copyright (c) 2000, Dow Jones & Company, Inc.) LOS ANGELES -(Dow Jones)- A Dynegy executive said Friday that the California Independent System Operator's plan to impose hourly price caps on the wholesale power market will compromise reliability by forcing generators to sell electricity out of state. "If the ISO says it will not buy above a certain price and generators cannot operate below that price, then we have no choice but to find other markets to participate in," said Dynegy senior vice president of marketing and trading asset management Lynn Lednicky. "That may lead to the ISO not finding the power it needs at a price it wants to pay." The ISO plans to construct hourly price caps each month based on forecast load, natural gas prices and generation unit efficiency. The caps will take effect Nov. 3 or soon therafter. Dynegy Inc. (DYN) sent a letter to the Federal Energy Regulatory Commission asking it to address reliability consequences of the price caps before Nov. 3. Dynegy specifically requested that FERC discuss the issue at its Nov. 1 meeting, when it will release a report on California's electricity problems. Enron Corp. (ENE) and Southern Company (SO) share Dynegy's concerns about reliability and plan to petition FERC about the issue, said a trader listening in to a conference call between the three companies. -By Jessica Berthold, Dow Jones Newswires; 323-658-3872; jessica.berthold@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. SEC Filing Shows 3rd Parties Contacted Enron About Azurix By Christopher C. Williams 10/27/2000 Dow Jones News Service (Copyright (c) 2000, Dow Jones & Company, Inc.) Of DOW JONES NEWSWIRES New York -(Dow Jones)- Shares of Azurix Corp. (AZX) jumped 84% in heavy trading Friday after parent Enron Corp. (ENE) proposed to take the company private in a $7-a-share buyout. Filings with the Securities and Exchange Commission showed that Enron made the proposal after not being satisfied with offers it had received from four third parties for its stake in Azurix. In a letter to two members of Azurix's board, Enron said three potential buyers "were unlikely to be willing to pay more than the then-current market price of approximately $4 a share." Enron said a fourth potential buyer indicated it would consider a $7-a-share offer, but it said that proposal was recently withdrawn. "The reasons given by the bidder included pro forma cash flows, the complexity of the capital structure, tax considerations and the currently pending securities litigation," the letter said. Mark Palmer, a spokesman for Houston-based Enron, declined to say whether Enron was entertaining current third-party interests or was in any talks with other parties regarding its Azurix stake. In New York Stock Exchange composite trading, Azurix ended Friday up $3 to $6.56 on 2.8 million shares, compared with average daily volume of 239,000 shares. Enron was up $1.38, or 1.8%, to $78.88 on 1.6 million shares, compared with its daily average turnover of 2.4 million. In the SEC filing, Enron, saying it's familiar with Azurix's various partial and full liquidation alternatives, said its buyout proposal is conditioned upon Azurix not selling any significant assets prior to the buyout. "Although we agree that such plans may result in greater value to Azurix's shareholders than the maintenance of the status quo, we believe that these options almost certainly will not result on a present value in a greater return to Azurix's shareholders than $7 a share," the letter said. Enron also said its buyout proposal doesn't include any breakup fees or other "deal protection devices." This frees Azurix's board to pursue an acquisition that "might provide greater value" to shareholders. Daine Bazelides, a spokeswoman for Azurix, declined to say whether Azurix is now entertaining offers for the company. She did, however, confirm the information contained in Enron's filing. "The historical information in the filing is factually correct," she told Dow Jones Newswires. She said she doesn't know when Azurix board will respond to Enron's proposal. In the filing, Enron didn't set a deadline, but warned that Azurix's position with customers and employees may deteriorate further. "We must therefore reserve the right to withdraw our proposal at any time," Enron's letter said. In the letter, Enron pointed out that Azurix had retained two "internationally recognized investment bankers" early this year to evaluate strategic alternatives, which included the potential sale of the company to unrelated third parties. Enron said it strongly believes there isn't another buyer willing to pay $7 a share for Enron's indirect interest in Azurix. "We believe it is in Azurix's best interest, as well as the best interest of its shareholders and employees, if Azurix were no longer a publicly traded company," Enron said. -By Christopher C. Williams, Dow Jones Newswires, 201-938-5219; christopher.williams@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron offers to buy out Azurix Financial Times By Hillary Durgin in Houston Published: October 27 2000 23:31GMT | Last Updated: October 27 2000 23:36GMT Enron, the Houston-based energy and trading group, said on Friday it had offered up to $275m in funding to take Azurix private at a buy-out price of $7 per share. The specific structure of Enron's proposal has yet to be determined, Enron said. Azurix said its board would now consider the proposal. The timing of any decision was unclear. Enron owns directly and indirectly about 66 per cent of Azurix, the troubled Houston water company, whose main asset is UK-based Wessex Water. The buyout offer is the latest development in a history of problems at Azurix, which was spun off from Enron and taken public at an offering price of $19 per share. But a combination of poor market timing, competitive industry conditions and empty promises by the company on Wall Street took their toll on the company, whose shares have since plummeted and have been trading most recently around the $3-per-share range. In August, Rebecca Mark, Azurix chief executive officer, resigned both from Azurix and from the board at Enron. Enron's offer came after four unnamed parties approached Enron about buying its stake in Azurix. While three of the four were unwilling to pay more than the then market price of about $4 per share, a fourth party who was considering offering $7 per share (before accounting for any dilution for stock options) later declined to pursue the transaction, Enron said in Friday's letter to Azurix, outlining the buyout proposal. "We strongly believe that our proposal is fair to Azurix's public stockholders," the letter stated. "Our proposed transaction would permit Azurix's stockholders to receive, on a timely basis, a cash payment for their shares that is significantly above the price at which those shares have traded in several months." Analysts that follow Azurix and had valued the shares at between $6 and $8 per shares said the offer was fair. Analysts that follow Enron said that Azurix's business strategy had proved to be a failure and was characteristic of the hard asset approach that Enron has gradually distanced itself from. Enron's shares closed at $78.88 up $1.38 on Friday. Azurix's shares rose $3 to close at $6.56.