Page A6
ember lü, 1999
- ÍHlje |lortlanì> (Pbaeruer
Business
tôtrermer
Enron to sell PGE Microsoft investors to shrug off legal woes
for $3.1 billion
A ssoliated P ress
A ssociated P ress
The power company Sierra Pacific
Resources said on Monday it had
agreed to acquire the Oregon-based
utility Portland General Electric from
Enron Corp, inadeal worth $3.1 billion.
The deal would make Sierra Pacific
one o f the largest power companies
in the western United States, with
about 1.7 million customers in Nevada.
California and Oregon.
Sierra Pacific said the deal would
increase its earnings per share in the
first year after completion.
Shares ofSierra Pacific fell 1/2 to 21 -
3/16 in early trade on the New York
Stock Exchange. Enron rose 1-9/16 to
39-7/16.
Sierra Pacific will pay Enron $2.02
billion incash, assume $80 million ot
obligations to cut the bi 11s o f Portland
General customers, and assume $1
billion o f Portland General debt and
preferred stock.
The obligation to Portland General
customers was among the terms of
Enron’s purchase ofPortland General
in 1997. Enron, the world’s largest
power marketer, said it no longer
needs to own regulated electric
utilities to reach its customers.
Sierra Pacific said the acquisition of
PortlandGeneral, which has 700.000
electricity customers in northwest
Oregon, fitted its strategy o f growing
its regulated utility businesses and
would produce cost savings "in line
with savings achieved in other utility
combinations.” It said it was “difficult
to project future staffing levels.
Michael Niggli, chairman and chief
executive ofSierra Pacific, said, "This
transaction is an important step in
fulfilling our previously stated goal
o f expanding our regulated utility
businesses”.
Niggli is to remain chairman and chief
executive o f Sierra Pacific. On
completion o f the deal, expected in
the second halfof2000. Pacific General
Chief Executive Ken Harrison is to
resign, but he will continue as
chairman o f Enron Communications
and as a member o f Enron’s board.
Sierra Pacific said the deal, to be
accounted for as a purchase, would
be financed through a bank loan. It
said it would ultimately put the
proceeds o f the planned sale o f its
Nevada electricity generation plants
toward the cost o f the deal, in addition
to issuing debt and equity and internal
cash.
It said it an ticip ates goodw ill
amortization from the deal o f about
$2 8 million annually over the next 40
years.
The deal is subject to the approval of
the S e c u ritie s and E xchange
Commission, the Federal Energy
Regulatory Commission, the Nuclear
Regulatory Commission, and the
Oregon Public Utility Commission.
Microsoft Corp, shareholders are expected to shrug
off a judge’s finding that the world’s biggest
software maker is a monopoly and focus instead on
business prospects at its annual meeting tomorrow.
On Friday, U.S. District Judge Thomas Penfield
Jackson said that Microsoft has a monopoly in
computer operating systems. Investors have taken
the findings o f fact largely in stride. The stock fell
1 1/16 to 88 7/8 today, 2.9 percent below Friday’s
closing price.
M icrosoft’s annual meetings traditionally are
congenial gatherings where shareholders ask
Chairman Bill Gates for his autograph and praise
the 24-year-old company, whose shares have soared
almost 500-fold since it went public in 1986.
Tomorrow's meeting is likely to be the same,
investors said.
“Microsoft is going to give a one-sided view o f the
world,” said Christian Koch, senior technology
analyst at Trusco Capital Management in Atlanta,
which owns Microsoft shares. “They’ll say the
glass is half full.”
Shareholders are likely to focus on new products,
such as the Windows 2000 computer operating
system, said Robert Finch, a portfolio manager at
Aeltus Investment Management, which owns
shares in Microsoft. Windows 2000 is considered
to be the company’s most ambitious update to its
software for running computers in networks. In
addition, investors want to hear about M icrosoft’s
move into software and services over the Internet.
“ People are more concerned about the continuing
product flow and broad strategy,” Finch said.
Open Agenda
The company has little official business to conduct
at the meeting. Shareholders are expected to re
e le c t M ic ro s o ft’s six d ire c to rs and hear
presentations from top executives, including Gates
and President Steve Ballmer. No shareholder
motions are on the agenda.
The meeting will be held in Bellevue, Washington,
a few miles south o f com pany’s Redmond
headquarters. Like the whole Seattle area, Bellevue
has benefited from M icrosoft’s meteoric rise. The
local economy has low unemployment and a
boom ing housing m arket, thanks in part to
Microsoft.
Judge Jackson wrote in last w eek’s finding that
Microsoft used its “prodigious market power and
immense profits to harm” rivals. A breakup o f the
company is among the remedies being considered
by the Justice Department in its antitrust case to
promote competition and consumer choice.
The judge has yet to issue a final ruling on whether
Microsoft violated the Sherman Antitrust Act or
assess punishment. His final decision is expected
to take months and an appeal by Microsoft could
stretch the case by several years.
Home business give people more time and money
Stress
proves less
of a problem
CONTRIBUTED S T O R Y ________________________
f o r T he
P ortland O bserver
More people drop dead at 9 a.m. on
Monday morning than at any other
time or day of the week.
When asked to named the one thing
that would make people’s quality of
life better, money is usually the first
mentioned? According to New York
T im es S p ecial R e p o rt, The
Downsizing ofAmerica43 million jobs
have been erased since 1979, 1500
jobs are eliminated every day, and 19
million people reported that a job loss
had caused a major crisis in their
lives.
Fortune Magazine reports that today,
at age 65,95% ofthe population in the
U.S. the richest nation in the world,
has less than $2,500 in savings. Also
the average Baby Boomer need $1.5
million in a retirement fund if they
expect to have any money in there
80’s ...
And that’s if they cut all spending by
30% when they retire. At the same
time, 82% ofall workers would work
more hours to maintain job security.
However, as reported, working longer
hours simply does not assure job
security.
Ifyou’re going to work longer hours,
futurists suggest you build a side
business, enabling more financial
independence. USA Today reports
that 96% o f adult 25-44 want to start
their own business, and 7 million of
them are already in network marketing.
The American Dream is owning your
business.
Over 40 million American are currently
involved in a home based business
because it enables people to make
good money while giving individuals
more control o f their time.
According To Money Magazine 30%
earn over $60,000, 20% earn between
$ 100,000 and $500,000. The average
income o f home based businesses is
$50,250 annually; more than double
the average annual wage o f $21,000.
Reside or have a business located in
Portland. The appointments to these
vacancies will serve three-yearterms.
The deadline for applying to fill these
vacancies is November 12,1999
T he
15-m em ber c o m m ittee,
established in November 1994, is
appointed by Mayor Vera Katz to
p ro v id e c itiz e n o v e rsig h t and
independent and representative
customer review o f water, sewer and
solid waste
Financial plans and rates. PURB
operates in an advisory capacity to
City Council. Interested citizens can
obtain an application for the positions
by going to Mayor Vera K atz’s web
site at www.ci.portland.or.us/mavor.
Business brief's
Task force u nveils
potential development
sites in V ancouver-
Williams Corridor
The Vancouver-Wil liams Task Force
will sponsor its second publ ic meeting
to present potential development sites
w ithin the V ancouver-W illiam s
corridor.
The meeting will he held November
18, from 6:30 p.m. to 8:30 p.m. at the
O regon Association o f M inority
Entrepreneurs (OAME) Plaza, 4134
N. Vancouver Ave.
Killingsworth bound the Vancouver-
Williams Corridor to the north, the
Interstate 84 on the south, Martin
Luther King Boulevard and 7,h Street
to the east and the Willamette River/
Interstate 405 Bndge/A lbina and
Mississippi avenues on the west.
The Vancouver-Williams Task Force
is comprised of residents, business
o w n ers, p ro p e rty o w n e rs and
community-based organizations.
For more inform ation about the
meeting, call Shelia Holden at 813-
6232 or Alex Dorsey at 823-331 1.
Portland housing market. A Metro
advisory com m ittee o f political
leaders, developers and government
officials will meet on November 15 th
to further discuss the issue.
Portland looks at real
estate tax to pay for low
income housing
Business, Neighborhood
representatives sought
for Portland review
board
Portland city officials are talking
about raising money for low-income
housing by levying a small tax on
every real estate transaction in the
region. City Commissioner Erik Sten
says something needs to be done to
find money for affordable housing.
He says people with low incomes are
being squeezed out o f the high-priced
The City o f Portland’s Portland
Utilities Review Board (PURB) is
seeking to fill vacancies for the
following representative positions:
one at large member, one local
business representative, and two
neighborhood representative from
e ith e r S o u theast, N ortheast or
Northwest Portland. Members must
Fed Up With
We’re Changing our Name to
21st Century
Insurance Group...
And the Whole World is Celebrating on the
Streets of Pasadena on New Year’s Day
Effective January 1,2000, the first day of the New
Millennium, 20th Century becomes 21st Century Insurance
Group...and our float in the Pasadena Tournament of Roses
Parade marks the coming out party for that new name.
BLAND
We've teamed up with Popeyes to spread the word
about flavor. And we mean FLAVOR! Popeyes own
NEW ORLEANS SPICY or LOUISIANA M ILD
thicken is so packed with flavor, every bite is a
PARTY FOR YOUR MOUTH! That's every bite of every
way Popeyes serves it up... Chicken Boxes, Dinners,
Sandwiches, Wings and Strips. Not to mention the
taste-tempting side dishes and biscuits!
"Yessir, you con COUNT ON POPEYES to deliver
flavorful goodness, no matter how you love your
chicken. If you are tired to death of that
_
bland chicken those other guys serve, come
on over to POPEYES. And help us in our mission to
SAVE THE WORLD FROM BLAND CHICKEN!"
Watch for us in the Rose Parade...and all over. Because
our
new name is not just a reflection of the new century,
it represents our continuing commitment to being your
premier source for value-priced insurance and
the finest customer service.
MISSION
—
I
I
And the best is yet to come.
TIP
-Redd & ZeKe
15 M IXED P IE C E S for 13."
I
I
■ «
21 st Century Insurance Group
(800) 2 1 1-SAVE
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