I'm not a business person in the least and really know nothing about some of the implications of what likely could happen if Dynegy acquires Enron. I've been reading Bloomberg and NYTIMES but no one seems to be covering the mid range impact on the city and the stock if it's acquired. What happens? Since Dynegy is a Houston based company, does that mean that there probably wouldn't be a great loss of jobs? What about the stock? Will Enron still be traded as ENE or will it disolve into one entity with Dynegy? Can anyone help me to understand this.
That's really my worst fear? That Mattress Mack would buy the naming rights and call it 'Gallery Furniture Field'.
Though there has been speculation that Dynegy will buy Enron, i'm not so sure about it. Enron has over 12 billion dollars in debt versus Dynegy's market capitalization is less than that. It is feasible if they sell of some operations within Enron such as more of their broadband assets. From an investment perspective I would buy Dynegy, simply because as Enron's credit worthiness declines plus the actions of the ex-cfo could be construed as conflicts of interest, and could force Enron business to go to Dynegy, which are the biggest competitors for each other. A merger of sorts could work, and i'm sure it would be in Dynegy's favor. I don't see this causing too many short-term layoff's in Houston because much of Enron's businesses that are being sold to raise capital are international. Hell, if they become desperate enough for money they could even sell the rights to the name, Enron field.
From Enron stockholders view, this would be good in the short term. In the long term, i believe this would be bad. While Enron has some problems, the debt downgrade is the worst. This makes it more expensive to do business with Enron. I don't see alot of layoffs as international would be affected more. There would be the standard layoffs of overlapping departments like CPAs, advertising, etc. IMHO, I think a merger would be good. Dyergy has more tangable assets. The new company would be VERY strong. I think the sell off of stock is over played. Remember, Enron is still a market leader that is the largest seller of natural gas and energy in the US. They are also the largest internet revenue producing company in the world. In one day last month, ENE did 4billion in business over the internet. Enron is still a $200 billion revenue company.
Oh god, no! I was worried before that he'd try and buy naming rights to the Rockets new stadium and I hate to say it, but the day that slimy punk Mattress Mack puts his name on any of Houston's sports teams is the day I am no longer a fan of that team, including the Rockets.
