Aquila, Dynegy Shares Soar on Asset Sales

Oil Daily, The, August, 2002

Aquila, Dynegy Shares Soar on Asset Sales

Nothing reassures stockholders more than knowing the subjects of their investments will be around for a while.

Investors in Aquila and Dynegy must have felt that way Monday after both companies confirmed significant asset sales whose proceeds will provide the companies with badly needed financial strength. Shares in both energy merchants soared more than 30%.

Dynegy completed the sale late Friday of Northern Natural Gas to MidAmerican Energy, a unit of industrialist Warren Buffett's Berkshire Hathaway group. The Iowa-based utility holding company paid $928 million in cash and assumed $950 million in debt.

The cash will carry Dynegy through until at least the second quarter of 2003, by which time...