Dynegy, Williams buy stake in e-commerce platform owner


Dynegy Inc., Houston, and Tulsa-based Williams have revealed they will invest $25 million each for minority equity stakes in eSpeed Inc., New York, an interactive electronic marketplace engine for business-to-business commerce. ESpeed plans to develop at least four new commodity-specific electronic spot and futures marketplaces, in which the market subsidiaries of Dynegy and Williams will participate. The three companies plan over time to build B2B marketplaces for energy, bandwidth, petroch


Dynegy Inc., Houston, and Tulsa-based Williams have revealed they will invest $25 million each for minority equity stakes in eSpeed Inc., New York, an interactive electronic marketplace engine for business-to-business commerce. ESpeed plans to develop at least four new commodity-specific electronic spot and futures marketplaces, in which the market subsidiaries of Dynegy and Williams will participate. The three companies plan over time to build B2B marketplaces for energy, bandwidth, petrochemicals, crude oil, and NGL.

ESpeed expects to make an electronic marketplace for natural gas and electricity available to market participants in the third quarter, with the development of additional marketplaces slated for the end of 2000.

ESpeed said that, with Dynegy and Williams, it shares "a strong desire to create neutral exchanges that can accommodate a multitude of electronic marketplaces."

"The growth of online energy trading has been phenomenal, and Williams believes that eSpeed is positioned to take the lead in this new trading revolution," said Williams' chairman, president and CEO Keith Bailey.

Chuck Watson, chairman and CEO of Dynegy, said, "After months of careful evaluation, we concluded that eSpeed, with its proven, state- of-the-art technology, along with its track record of developing marketplaces in the financial arena, is the ideal partner to develop the energy and bandwidth marketplaces of the future...We welcome and expect to attract multiple industry participants to achieve the liquidity necessary to create a robust, neutral exchange.''

The eSpeed infrastructure handles $150 billion/day in financial instrument transactions in fixed-income financial markets.

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