Enron considers offer for bandwidth business
Enron, which is attempting to sell off its businesses to repay creditors, may have found a buyer for its broadband network, Enron Broadband Services (EBS). Jarvis Entertainment Group (Jeg), a Texas-based internet technology and entertainment holding company, said its starting bid for EBS will be between $10 million and $50 million - a fraction of the once-estimated value of $1.2 billion.
In Q2 2001, EBS posted a loss of $102 million compared with $8 million in the corresponding period of 2001. And by the third quarter it had made a loss of $357 million, bringing the loss for the first three quarters of 2001 to $494 million. The number of bandwidth trades also fell from 765 in the second quarter of 2001 to 405 in the third quarter.
John Jarvis, chairman and chief executive of Jeg, told RiskNews that he is confident that there is a future for bandwidth trading, despite bandwidth participants El Paso and Reliant cutting staff in their bandwidth divisions late last year.
Jarvis, a colourful character, added that the talks with Enron are progressing well but that he feels “caught in a minefield” of federal agencies investigating Enron. “I just want to appease everyone and get Enron’s people back to work,” said Jarvis, although he declined to say how many bandwidth traders he would employ.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on People
People: Isda taps four new directors, O’Callaghan joins CA, Berlinski quits Goldman, and more
Latest job changes across the industry
People: Citi snags Raghavan, SocGen bags Estrada, all change at NYCB, and more
Latest job changes across the industry
Kane to leave Citadel Securities for senior Miax role
Options exchange has been on a four-year acquisition spree
Asia moves: senior hires at Millennium, Citi, SMBC and more
Latest job news from across the industry
Ken Pang set to join Millennium as Asia equities head
Former Credit Suisse markets co-head joins hedge fund’s Hong Kong office
People: Risk shake-up at Santander, JPM juggles markets, and more
Latest job changes across the industry
People: UBS rejigs EQD, risk head departs; Rustad joins buy side, and more
Latest job changes across the industry
Rustad re-emerges at Taula Capital
Former JP Morgan clearing head to help prepare for Q2 fund launch