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Enron Mail |
UK: Enron to shut London broadband business.
10/25/2001 Reuters English News Service (C) Reuters Limited 2001. LONDON, Oct 25 (Reuters) - U.S. energy company Enron said on Thursday it will shut its European broadband telecommunications business in London within the next six months and move the operations to its headquarters in Houston, Texas. "Poor demand for broadband services is being exacerbated by falling prices, requiring Enron to consider the best options for managing its global broadband business," a spokesman told Reuters. Enron recently scaled back its European broadband operations ahead of this latest consolidation, he added. The spokesman was unable to say how many people were employed in the business in London. Enron's CEO Kenneth Lay said earlier this month the company was reviewing options for the loss-making broadband operations which could include selling it or finding a partner. The broadband unit, which owns an 18,000 mile network, posted a loss of $800 million in the third quarter of the year. Enron launched its broadband business last year, predicting that network capacity would one day be traded like natural gas or electricity, but has recently admitted it overestimated the market's early potential. Problems with the broadband unit were one reason behind the sharp drop in the company's shares this year. The fall accelerated in recent days after the U.S. Securities and Exchange Commission announced an investigation into off-the-balance sheet deals with former chief financial officer Andrew Fastow. On Wednesday, the company announced Fastow had taken leave of absence and would be replaced by Jeff McMahon. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
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