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Enron Mail |
ENRON OFFERS TO FINANCE AZURIX BUYOUT AT $7/SHR
10/27/0 13:44 (New York) (The following is a reformatted version of a press release issued by Azurix Corp.) AZURIX CORP. RECEIVES PROPOSAL FROM ENRON CORP. TO FINANCE AZURIX PUBLIC SHARE BUY-OUT HOUSTON - Azurix Corp. announced today that its Board of Directors has received a proposal from Enron Corp. to provide funding to take Azurix private at a buyout price of $7.00 per share. The specific structure of the proposal has yet to be determined. Azurix is filing today a copy of the proposal with the U.S. Securities and Exchange Commission as an exhibit to a Form 8-K. Azurix Corp. (www.azurix.com) is a global water company that owns, operates and manages water and wastewater assets, provides water and wastewater related services, and develops and manages water resources. Azurix offers e-business solutions in the areas of procurement, engineering and design, water supply and storage and billing and collections. Azurix is listed on the Russell 2000 U.S. equity index. Its stock is traded on the NYSE under the ticker symbol, "AZX." (bh) PN -0- (CRL) Oct/27/2000 17:44 GM Enron Offers to Lend $275 Mln to Take Azurix Unit Private 10/27/0 13:38 (New York) Enron Offers to Lend $275 Mln to Take Azurix Unit Private Houston, Oct. 27 (Bloomberg) -- Enron Corp., the world's largest energy trader, offered to provide $275 million in financing to take Azurix Corp., its struggling water affiliate, private. The proposal would let Azurix buy back shares from private investors at $7 apiece, a 96 percent premium to yesterday's closing prices for the Houston-based company, Enron said. Azurix would buy back one-third of company. Enron already owns a third of the water company it created two years ago, and controls another third through an investor group called Atlantic Water Trust. Azurix shares have fallen more than 80 percent since Enron took the company public last year as part of a plan to exploit an expected boom in water treatment projects worldwide. Rebecca Mark, once considered in line for the chief executive's post at Enron, resigned in August as Azurix's chairman and chief executive because of the company's poor performance. Shares of Azurix halted trading at $3.94 on the New York Stock Exchange today. They've fallen from a high of $23.88 in July 1999. The company now has a market capitalization of $462 million. Shares of Houston-based Enron rose 88 cents to $77.38 in early afternoon trading. --Margot Habiby in Dallas (214) 740-0873, or mhabiby@bloomberg.net, through the Princeton newsroom (609) 279- 4000/alp Story illustration: To see the breakdown of Enron's annual sales, see {ENE US <Equity< DES6 <GO<}.
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