|
Enron buys up Azurix
|
 |
December 15, 2000: 2:26 p.m. ET
Enron buys water services firm for $8.375 a share; Azurix will be private
|
NEW YORK (CNNfn) - Water services company Azurix Corp. on Friday said energy company Enron will buy the 33 percent stake held by the public for $8.375 a share, up from a previous offer of $7 a share.
Enron (ENE: Research, Estimates), which owns a controlling stake in Houston-based Azurix (AZX: Research, Estimates), will in effect take the company private with the purchase of its almost 39 million publicly traded shares.
 Enron, which holds the majority of the seats on Azurix's board of directors, owns about one-third of Azurix's stock directly but also holds stock indirectly through a vehicle called Atlantic Water Trust. Azurix has about 117 million shares outstanding.
Atlantic Water Trust would continue to hold the remaining two-thirds of the Azurix common stock and thus would continue to control Azurix. Enron holds a 50 percent voting interest in Atlantic Water Trust.
The board of directors unanimously approved the transaction and its submission to Azurix's shareholders.
Enron also announced that it has settled in principle certain shareholder litigation pending in Delaware and Texas that had challenged the Enron proposal as unfair. The settlement is contingent upon execution of a definitive settlement agreement.
The company, which was formed by Enron, develops water and wastewater businesses around the world.
Shares of Azurix traded at about $8.06, up $1.94, on Friday afternoon. 
|
|
|
|
|
|
Azurix
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
