Dynegy chairman-CEO resigns; stock price fell more than 80 percent over past year
Tuesday, May 28th 2002, 12:00 am
By: News On 6
HOUSTON (AP) _ The chairman and chief executive of energy marketer Dynegy Inc., a one-time suitor of bankrupt Enron Corp., quit amid corporate woes that included a more than 80 percent decline in stock value in the past year.
The Houston-based company's board of directors announced Tuesday that it had accepted Chuck Watson's resignation.
Glenn F. Tilton, vice chairman of ChevronTexaco and a Dynegy director, was appointed interim chairman. Board member Daniel L. Dienstbier, who is president of Northern Natural Gas, was appointed interim chief executive.
The stock, which traded for $51.40 a year ago, fell to a low of $6.70 earlier this month on the New York Stock Exchange. It closed Friday at $9.60.
At Dynegy's annual shareholders meeting earlier this month, Watson blamed the fall on a negative perception of the energy industry in the wake of Enron's bankruptcy.
Dynegy tried to buy Enron last year, then backed away.
``For 17 years, I have endeavored to build value for all of our stakeholders,'' Watson said in a statement. ``As a shareholder, I fully support the combination of new and existing leadership at this stage of the company's evolution.''
Dynegy produces and delivers energy, including natural gas, power, natural gas liquids and coal.
The Securities and Exchange Commission is investigating a Dynegy natural gas contract that provided an $80 million tax benefit in 2001 and resulted in about $300 million in net cash flow during 2001.