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Dynegy, Enron mull revision
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November 26, 2001: 1:13 p.m. ET
Rival energy firms consider revising $9B merger, investment of private equity.
By Staff Writer Luisa Beltran
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NEW YORK (CNN/Money) - Dynegy Inc. and Enron Corp. are considering renegotiating terms of their $9 billion merger, a source familiar with the situation told CNN/Money Monday, as Enron shares continued to tumble.
But renegotiating the deal is not the only option for Enron, which also is looking at financing from unnamed private equity partners. Enron also is waiting to finalize a $500 million investment from J.P. Morgan and Salomon Smith Barney, according to the source, who asked not to be named.
"There is a lot of stuff being discussed," the source said. "Renegotiation is not the only thing or the central thing."
A spokeswoman for Dynegy Corp. declined to comment on revision of the deal. "At this point we are not aware of anything," she said. Houston-based Enron also declined to comment.
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CNNfn's Chris Huntington takes a closer look at the Dynegy-Enron situation.
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Shares of Enron (ENE: down $0.70 to $4.01, Research, Estimates) fell more than 13 percent Monday in afternoon trading while Dynegy (DYN: down $1.15 to $39.25, Research, Estimates) shed nearly 4 percent.
Before Dynegy emerged with its $9 billion merger, Enron had pitched a transaction to several private firms for a cash infusion. The troubled energy company held talks with GE Capital, the financial arm of General Electric (GE: up $0.30 to $41.32, Research, Estimates), and also approached Blackstone Group.
Blackstone declined to comment while GE Capital could not be reached for comment.
Houston-based Dynegy agreed Nov. 9 to acquire Enron for more than $9 billion. Since the announcement, Enron shares have dropped nearly 53 percent and the company revealed last week that a $690 million debt would come due soon.
Enron then received a reprieve on paying the note until mid-December. 
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