HOUSTON (AP) - Enron Corp. on Friday offered to reacquire water company Azurix Corp., which has foundered since it was spun off from the energy giant last year.
The Azurix board revealed that Enron offered to take Azurix private at the buyout price of $7 per share, about twice Azurix's share price before trading opened Friday on the New York Stock Exchange.
Azurix's shares skyrocketed on the news, closing up $3, or 84 percent, to $6.56 on the New York Stock Exchange.
Both Enron and Azurix are based in Houston. Azurix has yet to receive specific details of a possible repurchase, Azurix said.
Azurix owns, operates and manages water and wastewater systems worldwide.
Despite the rise in share price on Friday, the stock is far below Azurix's initial offering price in June 1999 of $19 per share. The stock plummeted when the company warned investors Aug. 8 that annual results would not meet analysts' expectations.
Rebecca P. Mark, a longtime Enron official who had risen to vice chairwoman before heading up Azurix, resigned in August to pursue private investment opportunities.