Enron Scandal

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Enron Scandal

Muhammad Umair
University of economics, Prague
umairgulzar@msn.com
+420 776 475 111
1/6/2013
Presented to: Prof. Josef Tauser
Report of finance final project presentation

Introduction and history of Enron:
ENRON, business based inside Houston, controlled one of many major natural gas transmission networks inside The united states, amassing over thirty seven, 000 miles, not only is it the best internet marketer involving natural gas and also energy in the USA. Enron handled your planet's major stock portfolio involving natural gas threat operations legal agreements and also pioneered revolutionary buying and selling products. The business has been on Fortune's "Most Innovative" in the USA list for countless years operating and also reached #7 within the Lot of money 500 record inside 2000. Its bankruptcy inside 12 , 2001 has been the best this sort of health history inside U.S history. The actual title Enron evolved into identified together with corporate avarice and also data corruption, as well as demise price people and also staff members over $70 billion inside dropped capitalization and also pension rewards. Enron has been shaped by the merger in between Houston Gas (HNG) and also InterNorth. HNG has been shaped from the Houston Essential oil Company. Inside 1920s and also furnished gasoline for you to list shoppers inside Houston. Throughout 1976 that available the list gasoline small business inside Houston for you to concentrate on gasoline seek and also output and also other companies. Simply by 1984 HNG acquired property involving $3. 7 billion, income involving over $2 billion, and also revenue involving $123 trillion. InterNorth commenced while North Gas Firm, sorted inside Omaha, Nebraska, inside 1930. While InterNorth, together with one of many place's most recognized pipeline networks together with gross income involving $7. 5 billion inside 1984, identified by itself your possible takeover target involving corporate raiders, BOSS Mike Segnar searched for to get away HNG, as well as a deal has been announced inside May possibly 1985 during which InterNorth would likely obtain HNG with regard to $2. 4 billion. The actual set up predetermined the combined entities can be known as HNG/InterNorth and stay based inside Omaha together with Segnar while chairman and also BOSS. Throughout 1984 your Government Energy Regulatory Fee eased a number of the pricing constraints on natural gas and also authorized neighborhood gasoline syndication organizations to get gasoline via anywhere and also anybody. Ken Place easily accumulated some sort of popularity with regard to performance during this time period simply by discussing Enron's evade via a number of the much more difficult and also high-priced "take-or-pay" legal agreements from the 1970s. Throughout 1989 Enron developed a brand new method to market natural gas for you to consumers—the Fuel Bank—a strategy manufactured by Jason Skilling, some sort of consultant in McKinsey & Company. The actual Fuel Traditional bank dished up for intermediary in between potential buyers and also dealers involving gasoline and also evolved into a hit. Gas has been currently traded as being a commodity, and also Skilling still left McKinsey with regard to Enron's buying and selling procedure inside 1991. Enron begun to view by itself mainly as being a investor in lieu of as being a gasoline manufacturer and also begun to divest by itself involving weighty pipeline property; simply by 2000 that owned all 5 1000 a lesser number of miles involving water pipe compared to inside 1985. Inside the mid-1990s that made an appearance in which drinking water, such as natural gas, has been on its way for you to currently being deregulated. Throughout September 1998 Enron obtained Wessex Mineral water involving England with regard to in excess of $2 billion and also renamed the new small business Azurix. However, establishments involving range failed to do the...
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