ENRON MAKES PROPOSAL TO AZURIX BOARD
TO FINANCE AZURIX PUBLIC SHARE BUY-OUT
FOR IMMEDIATE RELEASE: Friday, October 27, 2000
HOUSTON -- Enron Corp. announced today that it made a proposal to the Board of Directors of Azurix Corp. to provide funding to take Azurix private at a buy-out price of $7.00 per share. Enron proposed to finance up to $275 million for the sole purpose of funding the buy-out. The specific structure of the proposal has yet to be determined.
The proposed cash buy-out allows Azurix public shareholders to receive a significant premium to the market price of Azurix. Enron believes the value offered also would be greater than any sale to a third party.
The proposed buy-out provides other benefits to Azurix, including a significant near-term reduction in Azurix’s general and administrative expenses, greater certainty to Azurix’s customers and employees and increased flexibility for restructuring Azurix’s assets and business.
Enron expects its proposal to have a neutral impact on its own positive earnings and credit outlook.
Enron is one of the world’s leading electricity, natural gas and communications companies. The company, with revenues of $40 billion in 1999 and $60 billion for the first nine months of 2000, markets electricity and natural gas, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Fortune magazine has named Enron “America’s Most Innovative Company” for five consecutive years, the top company for “Quality of Management” and the second best company for “Employee Talent.” Enron’s Internet address is www.enron.com. The stock is traded under the ticker symbol “ENE.”
(more)
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Enron believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include unforseen difficulty in completing the proposed transaction, including, but not limited to, legal challenges, regulatory uncertainty, and shareholder opposition.
###
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Mark Palmer
(713) 853-4738
 |
