Dynegy to purchase Enron pipeline

Defunct energy trading company Enron said today it would agree to allow Dynegy to exercise its option to buy the lucrative Northern…

Defunct energy trading company Enron said today it would agree to allow Dynegy to exercise its option to buy the lucrative Northern Natural Gas pipeline.

In a separate statement, Dynegy said it would extend Enron's option to buy back the pipeline to June 30th.

Enron said it was still pursuing a separate suit against Dynegy seeking $10 billion in damages and that Dynegy would dismiss its Texas counter-suit.

Dynegy said it would pursue claims against Enron for what it called breaches of the merger pact, which fell apart in December. For its part, Enron filed a suit against Dynegy on December 2nd in New York when it filed for the largest Chapter 11 bankruptcy in US history.

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Dynegy said it would pay Enron $23 million exercise price at the closing of the pipeline deal, subject to some adjustment.