Article: Enron Seeks Bankruptcy Alternatives, May Sue Local Rival over Failed Merger.

By Laura Goldberg, Houston Chronicle Knight Ridder/Tribune Business News

Nov. 30--A day after Dynegy walked away from its deal to buy Enron Corp., Enron scrambled to find alternatives to a bankruptcy protection filing and worked to get its trading operation back on its feet while employees wondered how long they would have jobs.

Enron also may be preparing for a legal battle with Dynegy to fight Dynegy's termination of the merger deal and Dynegy's claim to Enron's Northern Natural Gas pipeline system.

A source close to the situation said Enron likely would sue over the merger termination.

Wednesday morning, Dynegy walked away from ...

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