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Why did Dynegy withdraw from its agreement to acquire Enron?
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Enron scandal
The Enron logo outside the company's headquarters, Houston.
Dynegy withdrew from its agreement to acquire Enron in November 2001 after details of the company's accounting fraud emerged and its financial situation deteriorated rapidly.1
Following the revelation of massive losses and the Securities and Exchange Commission investigation into Enron's use of special purpose entities, the company's stock price plummeted. Dynegyâs decision to back out of the acquisition deal caused Enron's stock to drop to under $1 per share, ultimately forcing the company to file for bankruptcy protection on December 2, 2001.1