Why did Dynegy end up not buying Enron?

Enron was in a death spiral at that point and Dynegy didn't want to end up getting killed by it (not that history will smile on Dynegy either). The death spiral for Enron -- at least the part of it that ended Dynegy's plans to buy them -- was as follows: Enron had raised some emergency capital in late 2001, ~$5.5 billion. read more

Enron was in a death spiral at that point and Dynegy didn't want to end up getting killed by it (not that history will smile on Dynegy either). The death spiral for Enron -- at least the part of it that ended Dynegy's plans to buy them -- was as follows: Enron had raised some emergency capital in late 2001, ~$5.5 billion. read more

"As of this morning, we are no longer trading with Enron unless Enron puts up sufficient credit to support its continued trading," Dynegy Chief Operating Officer Steve Bergstrom said on the conference call. Dynegy still has a $75 million exposure to Enron, he added. read more

Dynegy has negotiated a great takeover. And it may end up buying Enron, too. As part of its planned acquisition of Enron, Dynegy will get the crown jewel even if the overall deal falls apart. In return for its $1.5 billion investment today, Dynegy has the right to acquire Northern Natural Gas, a pipeline system that is probably worth more. read more

Enron evolved from a diversified gas company (with reservoirs, refineries and pipeline) into a market maker, under the leadership of Jeff Skilling, who joined the company from McKinsey, where he had been a partner working on several projects commissioned by Enron. read more