Why did Enron seek to be acquired by Dynegy?

In November 2001, Enron attempted to be acquired by Dynegy as a desperate measure to avoid financial disaster and total collapse.1

Following the exposure of widespread accounting fraud—including the use of special purpose entities to hide massive losses and the manipulation of financial statements—the company entered a state of free fall. As investigations by the Securities and Exchange Commission intensified and investor confidence evaporated, Enron’s stock price plummeted from a high of $90 per share to less than $12. By seeking an acquisition by Dynegy, Enron executives hoped to stabilize the company and stave off the impending bankruptcy filing.1

The effort ultimately failed when Dynegy backed out of the deal weeks later, causing Enron's stock to drop to under $1 per share and leading the company to file for Chapter 11 bankruptcy protection on December 2, 2001.1