Gone With the Wind
Enron, the financially (and, some would say, morally) bankrupt energy trading firm, announced this week that it will sell its wind-turbine business to General Electric. If the transaction is approved by bankruptcy court and federal regulators, Enron will use the proceeds — a rumored $250 million — to repay creditors, while GE will use the new business as a stepping-stone into the renewable energy sector. The proposed acquisition would mark the energy giant’s first investment in wind power, an industry which it expects to grow at an annual rate of some 20 percent. The deal covers Enron’s wind turbine manufacturing and marketing operations, but not the wind farms it owns and operates, which are slated to close later this year. The proposed sale to GE comes as a surprise to analysts, who were expecting European companies — which dominate the sector — to vie for purchase of the operations.