Enron says SEC probe now formal
Company names special committee led by UT Law dean
By Lisa Sanders, CBS.MarketWatch.com
Last Update: 5:46 PM ET Oct. 31, 2001

HOUSTON (CBS.MW) - Embattled Enron announced late Wednesday that the Securities and Exchange Commission investigation into two of its limited partnerships has become a formal inquiry.

An SEC spokesman declined to comment, and Enron officials weren't immediately available. Enron (ENE: news, chart, profile) has publicly pledged to cooperate fully with the SEC.

The Houston-based energy merchant also said that it's formed a special committee to examine transactions between the corporation and entities with connections to related parties. One of the group's duties is to communicate with the SEC.

In addition, the company named Williams Powers, dean of the University of Texas at Austin Law School, to its board and elected him to lead the committee. Former SEC division of enforcement chief William McLucas, a partner in the law firm of Wilmer, Cutler & Pickering, was named Enron's counsel.

Shares, which had gained 25 percent during the regular session, lost 75 cents to $13.15 in after-hours dealings.

Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com.

-- Cherri (jessam5@home.com), November 11, 2001