Quotes for Enron Corp.'s bank debt fell to 25 from 50 after news broke Wednesday that Dynegy Corp. would not be acquiring the beleaguered company. This came on the heels of the simultaneous downgrades by Standard & Poor's and Moody's Investors Service of Enron's credit to junk status. "It's not a huge surprise," a dealer said of the nixed merger. "The debt rating agencies gave the two time to get a deal done and nothing happened." In other names, a $20 million chunk of Crown Cork & Seal traded yesterday at 79 ½, which was down nearly a point from the level traded at an auction the day before. Industrial Bank of Japan was the rumored seller, and J.P. Morgan was said to have bought the piece. Officials at both shops would not comment.
In par news, IMC Global's debt is trading at 100 ½ on the sale of the company's chemical unit in early November. Nextel Communications' levels are back on the upswing, trading up to 91 5/8 then most recently hitting 92 5/8. Allied Waste's debt is inching towards par, last hitting 99 1/8, on news that $750 million of the company's $7 billion deal has been paid down.