John L. Garrison elected president & CEO
HOUSTON, Aug. 25, 2000 -- The chairman and chief executive officer of Azurix Corp. has resigned after its stock fell to nearly a third of its original IPO value.
Azurix Corp. announced today that Rebecca Mark has resigned, to be replaced by John L. Garrison, the president and chief operating officer of Azurix.
Herbert S. Winokur Jr., presently an Azurix director, has been elected interim chairman of the board of directors to assist in this review.
"We are going to conduct a thorough review of all of our businesses, our cost structure and our strategy to determine how best to improve our financial performance and to maximize shareholder value," Garrison said.
Garrison has served as president and chief operating officer of Azurix since March 2000. Before joining Azurix in 1999, he served as vice president and general manager of the North American Agricultural Group of Case Corp.
Winokur has served as a director of Azurix since 1999 and, since 1985, as a director and the chairman of the Finance Committee of Enron Corp., which holds a substantial stake in Azurix. He currently serves as chairman and chief executive officer of Capricorn Holdings, Inc., a private investment company.
When Azurix reported its 69 percent decline in second-quarter net income, the company explained that it was because of higher interest, depreciation and amortization costs stemming from acquisitions, as well as a 12 percent rate cut imposed in April on its British utility subsidiary, Wessex Water, by British regulators.
Mark, who also has resigned as a member of the board for Houston-based energy company Enron Corp., said she will pursue opportunities as a private investor in the water resources business.
Azurix stock fell 15/16 to a new all-time low of 4-5/8 following news of Mark's resignation and the 69 percent decline in net income for this year's second quarter.
Azurix Corp. (http://www.azurix.com) is a global water company that owns operates and manages water and wastewater assets, provides water and wastewater related services, and develops and manages water resources. Azurix offers e-business solutions in the areas of procurement, engineering and design, water supply and storage and billing and collections. Azurix is listed on the Russell 2000 U.S. equity index. Its stock is traded on the NYSE under the ticker symbol, "AZX."
Enron set up Azurix in 1998 and spun it off by means of an initial public offering of stock at a price of $19 per share in June 1999. It still holds a stake of more than 30 percent in Azurix.
