Enron to sell Portland utility

HOUSTON, Nov. 18 (UPI) -- A private investment group has signed an agreement to purchase Oregon's largest utility from bankrupt Enron for $2.35 billion.

A group of Oregon businessmen, including former Gov. Neil Goldschmidt, plan to purchase Portland General Electric, which serves half the state's population. The group, Oregon Electric Utility, has the backing of a Texas investment group.

Portland developer Tom Walsh and Seattle venture capitalist Gerald Grinstein joined Goldschmidt in the new ownership group. Texas Pacific Group is one of the nation's leading private equity investment firms.

Enron board of directors approved the transaction, which also has the support of the official unsecured creditors committee. It requires the approval of the bankruptcy court and several state and federal regulatory agencies.

Under the bankruptcy court rules there will also be an "overbid" process, which allows other potential buyers to submit superior bids on the utility. If the Oregon Electric Utility deal is approved, a closing could come as soon as the second half of 2004.