Enron Corp., a Houston, Texas-based electricity, natural gas and communications company, earned $101 billion in 2000 and rode the wave of prosperity in the stock market.
How times have changed.
Enron is now seeking $2 billion from investors after its stock plummeted from its 52-week high of $84.87/share to $7/share, its lowest in almost a decade. The stock dropped by 70% in value since mid-October following the U.S. Securities and Exchange Commission’s investigation on disclosures that Enron did off-balance sheet deals. Energy Company Dynegy Inc. may invest the $2 billion in a transaction that could lead to a merger of the companies, according to the Wall Street Journal.
Enron may also lose or sell its metals trading business. The company became a major player in the metals trade by acquiring MG plc, a London independent international metals dealing firm last May.