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ENRON CORP. AND ENRON GLOBAL POWER & PIPELINES ANNOUNCE MERGER PROPOSAL
FOR IMMEDIATE RELEASE: Wednesday, May 14, 1997
HOUSTON -- Enron Corp. and Enron Global Power & Pipelines L.L.C. (EPP) jointly announced today that Enron has submitted a formal merger proposal to the Oversight Committee of the Board of Directors of EPP. Enron is proposing to merge EPP into Enron in a transaction in which each EPP stockholder would receive $32 per share in Enron common stock.
"Enron has been considering strategic alternatives involving its ownership interest in EPP and believes that the proposed merger will afford EPP shareholders a superior opportunity to participate in Enron's international development and merchant activities as well as Enron's other operations," said Kenneth L. Lay, chairman and chief executive officer of Enron.
In response to Enron's proposal, EPP indicated that the Oversight Committee will appoint independent financial and legal advisers to assist in evaluating this proposal. The Oversight Committee is comprised of EPP's three outside directors. It is expected that it will be several weeks before the Oversight Committee completes its evaluation.
Today's closing price for EPP's shares was $32.375, up $2.125 in trading today alone, compared to $28 a month ago. The $32 offer price represents a 14 percent premium above the month ago price. EPP has approximately 26 million shares outstanding, of which 12.5 million are in the public market and the remaining 13.5 million are held by Enron.
Enron Global Power & Pipelines, majority owned by Enron, is traded on the New York Stock Exchange under the ticker symbol, "EPP." EPP's assets consist of interests in two power plants in the Philippines, power plants in Guatemala and the Dominican Republic and natural gas pipeline systems in Argentina and Colombia. EPP and Enron are parties to a purchase right agreement that requires Enron to offer EPP ownership interests in qualifying power and natural gas pipeline projects developed or acquired by Enron outside the United States, Canada and Western Europe at prices more favorable to EPP than those at which Enron would be permitted to sell the projects to any third party.
Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; is a leading participant in liberalized energy markets in the United Kingdom and the Nordic Countries; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; is one of the largest independent developers and producers of electricity in the world; and is a major supplier of solar and wind renewable energy worldwide. Enron is traded under the ticker symbol, "ENE."
For additional information please contact:
Carol Hensley
(713) 853-6498
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