story

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 © 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."