Azurix Surges on News of Enron Acquisition

Shares of Azurix (AZX Quote), a water services company, surged Friday on news it had agreed to a plan to be acquired by energy and communications giant Enron (ENE Quote).

Azurix's shares were lately up $1.94, or 31.63%, to $8.06 in trading on the New York Stock Exchange.

Under the terms of the buyout plan, Enron would acquire Azurix's publicly traded shares -- about one-third of the total 117 million shares outstanding -- for $8.375 a share, up from a previous offer of $7 a share. The remaining two-thirds of the company will continue to be held by the Atlantic Water Trust, in which Enron holds a 50% voting interest.

Azurix's board of directors unanimously approved the buyout plan. A shareholders' meeting is planned for February 2001. Azurix also announced that it settled certain shareholder litigation pending in Delaware and Texas that had opposed the Enron proposal as unfair. No financial details were disclosed.