Fears for Enron as Dynergy pulls out of takeover

HOUSTON - Dynergy has pulled out of its proposed takeover of energy giant Enron because of concerns that black holes in Enron's accounting will make it impossible to quantify liabilities. The potential bankruptcy of Enron is said by commentators to be much more likely now that its only viable partner has withdrawn. Enron, once a leading market maker in applying innovative capital market trading structures to the bricks and mortar utilities business, has fallen fast, upsetting not only its core power and gas markets, but also the nascent business of trading in weather derivatives.