-Caveat Lector- This story was sent to you by [EMAIL PROTECTED] with these comments: >From CBS.MarketWatch.com, online at: http://www.marketwatch.com/news/story.asp?siteID=myyahoo&guid=%7BFB300E4C%2D470A%2D47A0%2DA1A6%2D396CBEE0F7E9%7D ENRON'S CHIEF EXECUTIVE RESIGNS By Lisa Sanders 7:30 AM ET Aug 15, 2001 HOUSTON (CBS.MW) -- Jeffrey Skilling, Enron's chief executive since February, has resigned and is leaving for personal reasons, the company said late Tuesday. Enron's shares lost $1.93 after the announcement. Enron shares (ENE) hit $39.50 on Instinet in European trading, building onto a 7 percent slide to $39.80 overnight on the resignation. Enron closed Tuesday up 78 cents to $42.93 ahead of the announcement. Merrill Lynch downgraded its short-term and long-term ratings on the stock to neutral and accumulate respectively from buys amid the surprise resignation. "We are moving to the sidelines for the intermediate term because we believe the premium Price-to-Earnings (ratio in ENE stock) is not likely to hold up during that time," analyst Donato Eassey said. Enron is the nation's No. 1 buyer and seller of natural gas and the leading wholesale power marketer. It also operates a gas pipeline system and a broadband unit. The money-losing broadband division has scaled back operations twice because of a lack of revenue opportunities, but overall earnings at the company have been strong. Skilling, 47, was president and chief operating officer for four years before he became chief executive and president, and he was at the company for more than 11 years. In the interim, Chairman Kenneth Lay, 59, will assume Skilling's duties. Lay was chief executive since 1985 until early this year. During Lay's tenure, Enron's market capitalization rose to $70 billion from $2 billion and the company's shareholders realized a return on investment three times that of the S&P 500. "I and the Board regret Jeff's decision but we respect his reasons," Lay said in the conference call, adding: "I can honestly say I've never felt better about the company and its business prospects." Enron won't go outside the company to name a successor, said spokesman Mark Palmer. There are several internal candidates, though Palmer declined to name them. Lay said he was prepared to stay as long as necessary to prepare the succession for chief executive. Palmer said Skilling's departure has nothing to do with Enron's (ENE) flagging stock price. In the space of about a year, the value of the stock has fallen from a 52-week high of $90.75 on Aug. 23, 2000, to $42 on Aug. 9. "This has nothing to do with Enron and everything to do with personal and family considerations, and (Skilling) is going to keep those private," Palmer said. Palmer stressed that Skilling believes the company is in "great shape and the talent pool is as deep as it's ever been. If there was a time for him to leave, this is the time to do it." Because the resignation was voluntary, Skilling won't receive severance, Lay said. However, he's bound by a noncompete clause in his contract through 2003. In the conference call, Skilling, who will stay on as a consultant, reiterated what Palmer said earlier. Lay has agreed to extend his employment agreement through 2005, Enron said. Palmer also noted that Enron has upped its 2002 earnings-per-share forecast to $2.15 from $1.80 in 2001. <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance�not soap-boxing�please! These are sordid matters and 'conspiracy theory'�with its many half-truths, mis- directions and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
