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Enron Mail |
Peter, I think there was 1 option left out, which is:
Unwind the PML transaction and assume that you can do what was proposed in #1 and continue to buy options each year to cover any incremental earnings you get from the PML/ECC naked hedge. This would in effect allow you to assume the full tax shield value of the unwind in earnings this year as there would never be a tax liability in future years from the potential hedge income.....This 1)allows ECC to mix it up a little in terms of what we are doing to mitigate taxes and 2)lets you capture the value of the unwind now when it is available. We may not own this asset next year, so the value of this opportunity would go away.... Cheers, Paul D
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