Williams could pick up some needed cash and finally end its costly affiliation with its former telecommunications unit by selling its shares to an unknown, deep-pocketed investor, according to news reports. Williams Communications Group Inc., which siphoned off its parent’s cash before spinning off, and then never turned a profit, filed for bankruptcy protection earlier this year (see Daily GPI, April 24).
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Williams Apparently Close to Severing Ties with Communications Unit
Williams could pick up some needed cash and finally end its costly affiliation with its former telecommunications unit by selling its shares to an unknown, deep-pocketed investor, according to news reports. Williams Communications Group Inc., which siphoned off its parent’s cash before spinning off, and then never turned a profit, filed for bankruptcy protection earlier this year (see Daily GPI, April 24).
Rio Alto Acquisition (C$2.4 Billion) for Canadian Natural a Done Deal
Canadian Natural Resources Ltd. said early last week that its acquisition of Rio Alto Exploration Ltd. has come to a close following 99% approval margin at a meeting of Rio Alto security holders. Rio Alto was expected to become a wholly-owned subsidiary of Canadian Natural on Thursday ((July 4).
Senator Urges FERC to Focus on Gas Trades in Probe
Sen. Dianne Feinstein (D-CA) has called on the Federal Energy Regulatory Commission to pay close attention to natural gas traded between November 2000 and May 2001 as it continues to investigate allegedly fraudulent and manipulative trading practices in California and other western energy markets during the critical 2000-2001 period.
ICE, IPE and Nymex Post Record Volumes
IntercontinentalExchange Inc. (ICE) and International Petroleum Exchange Ltd.(IPE) reported sizeable increases in volumes transacted at the close of the first quarter, with significant growth in most product categories. The New York Mercantile Exchange Inc. (Nymex) also reported that March trading activity set monthly records for overall volume and for a number of products.
Shell Greases Motor Oil Sales with Pennzoil Buy
The transaction, subject to approval by Pennzoil’s stockholders and customary regulatory reviews, is expected to close in the second half of 2002 and is expected to add to Shell’s earnings and cash flow in the first full year after it is completed. Shell’s estimated pre-tax benefits from the transaction will total about $140 million a year by 2004. One-time transaction costs were estimated at $100 million.
Canaan Adopts Shareholder Rights Plan, Evaluates Chesapeake Bid
Under Canaan’s shareholder rights plan, preferred stock purchase rights will be distributed to shareholders of record as of the close of business on March 25. The shareholder rights plan actually was under consideration before the tender offer by Chesapeake. The rights plan is designed to assure that Canaan’s shareholders receive fair and equal treatment in the event of any proposed takeover of the company and to deter potential abusive tactics to gain control of the company without paying a fair price to shareholders. The plan won’t prevent a takeover, but should encourage anyone seeking to acquire the company to negotiate with the board. The rights will be exercisable only if a person or group acquires 15% or more of the company’s common stock.
Andersen Internal Review Pending; Enron CEO Warns of Lawsuits
Enron Corp.’s former outside accountant Arthur Andersen and the accounting firm’s law firm are apparently close to completing an internal review into when and how its employees destroyed documents relating to the bankrupt company’s business practices. Details of the report by Davis Polk & Wardwell could be released this week, but Andersen also indicated that its investigation is ongoing.
Ex-Chairman Lay ‘Duped’ by Close Associates in Enron Swindle
Former Enron Corp. Chairman Kenneth L. Lay went on possibly the biggest emotional roller-coaster ride of his life last week, first being subjected to what amounted to a public verbal flogging at the hands of a Senate committee on Tuesday — one senator called him “perhaps the most accomplished confidence man since Charles Ponzi” — only to be somewhat rehabilitated later in the week when a high-level Enron executive testified that Lay had been “duped” by his closest associates.
Dynegy to Close on Enron’s NNG Pipeline by Month’s End
Although the end of the story is far from written, Dynegy Inc. late Thursday announced that it has settled the lawsuit with subsidiaries of Enron Corp. for Dynegy to exercise its option to acquire the Northern Natural Gas (NNG) pipeline. Dynegy and Enron agreed to a closing by the end of January 2002. Dynegy, in return, has agreed to extend Enron’s option to repurchase the pipeline from May 9, 2002, to June 30, 2002.