Analyst report spooked Enron management

At the trial of former Enron CEOs Ken Lay and Jeff Skilling, a former top
manager at the energy company said a 2001 analyst report valued Enron at less
than half its market value, five months before it collapsed into bankruptcy.

Testifiying at the Houston trial, Kevin Hannon, former chief operating
officer at Enron Broadband Services, said the report, published in May 2001 by
the Off Wall Street Consulting Group, was discussed at a meeting of Enron’s
senior managers, including Lay and Skilling, Reuters reported.

At the meeting one executive claimed the report was valid in its criticisms
of the company, Hannon said.

According to Hannon, Jeff Skilling responded by saying: ‘They’re onto us.’

Skilling is charged with 31 counts of conspiracy, fraud and money laundering,
and Lay is charged with seven counts of conspiracy and fraud. They both deny any

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