Dynegy Pulls the Plug on Enron

Updated from 1:31 p.m. EST

Dynegy (DYN Quote) nixed its merger with Enron (ENE Quote) Wednesday, just hours after a debt downgrade dealt Enron a crushing blow. Enron shares plunged 81%, showing the market believes a bankruptcy filing is all but certain.

Dynegy and Enron had spent the last week making a last-ditch effort to save the merger, which was originally valued at more than $9 billion and would have combined two leading energy traders. But those talks were doomed by the downgrade, which tightened the financial vise around Enron. ...