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CNN Sunday Morning

Enron Moves Toward a New CEO

Aired January 27, 2002 - 08:24   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: To the fallout over the Enron collapse. As the embattled company moves closer to naming a new CEO, the death of a former Enron executive is now officially ruled as suicide. CNN's Fred Katayama joining us from Houston, where the city is still reeling over the latest developments.

Fred, what is the latest there?

FRED KATAYAMA, CNN CORRESPONDENT: Well, Miles, the autopsy found that J. Clifford Baxter had died from a self-inflicted gunshot wound to the head. The medical examiner's office said there were no signs of foul play. Now despite the ruling, local police here say they are continuing with their investigation.

Police found Baxter dead early Friday morning in a car parked near his home in Sugarland (ph), just outside of Houston. A 38 caliber revolver was also found in the car. Police found a suicide note, but they're not saying where they discovered it and they're not revealing its contents.

Now friends of Baxter, with whom I spoke, said that they noticed that recently he showed signs of stress. They noted that he appeared a bit disappointed, concerned, even depressed about the fate of his former employer Enron and the company's collapse. Now this is a company where he once served as vice chairman. They also -- some of them also noted that he used to sport a head of gray hair -- a salt and pepper gray -- and that it had suddenly turned white all in the span of the last month.

What we do know is that congressional investigators were seeking to talk to him. Plus, his lawyer says at least two congressional committees had subpoenaed him. He has also been named in a shareholder lawsuit, a lawsuit claiming that he had sold 577 shares of Enron stock, raising more than $35 million. Plus, he was also named in the famous whistle blower memo put out by former Enron employee Sherron Watkins. In it, Watkins noted that Baxter had complained mightily to the company's president about the company's accounting practices. Practices which eventually led to Enron's collapse. Baxter's lawyer says that a funeral service will be held in Amityville Long Island, just outside New York City where Baxter was raised.

Now separately, we've learned that -- that Enron is closer to naming a new chief executive officer to replace Ken Lay, who had suddenly resigned earlier this week. The front-runner, we've heard, is Steven Cooper (ph), a bankruptcy -- a reorganization specialist at the New York-based (UNINTELLIGIBLE) Cooper (ph) -- Miles.

O'BRIEN: CNN's Fred Katayama in Houston, thank you for the update from there.

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