Northwest in Talks to Buy Portland GE
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Northwest Natural Gas Co. said it was in talks to acquire Enron Corp.’s Portland General Electric Co., a deal that would bring together two Oregon utilities.
A deal would be a major step in Enron’s plan to shed slower-growth assets and focus on its core energy marketing and trading business. A deal to sell Portland GE to Sierra Pacific Resources collapsed five months ago.
Sources familiar with the situation said Northwest was offering $1.8 billion in cash and stock and would also take on $1 billion of debt in the deal. They said the talks were at an advanced stage and Northwest’s board could vote on the deal over the weekend.
Northwest confirmed the talks but said there was no assurance that a deal would be struck and it would not make any additional comments on the matter unless a formal agreement was reached.
Enron acquired Portland GE in July 1997 for $2.1 billion.
Northwest shares fell $2.58, nearly 10%, to $23.41, and Enron fell $1.37, or 4%, to $31.73, both on the New York Stock Exchange.
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