Shell (Coral) Scuttlebut

Rene's best guess is that Shell is going to contribute their pipe and their
marketing business to Intergen (a Shell-Bechtel JV involved in international
generation...hence the name), and then spin it out to the public. This would
put cash in Shell's pocket and rid them of a business that they feel they
paid way too much for. It would give Intergen some needed scope, and an
immediate presence in North America. I understand there was some sort of
"standstill" restricting Intergen's activities in the US that will soon
expire. Intergen plans to escalate its US activities when the standstill
expires, and their management can't wait to get out from under the stodgy
thumbs of Shell and Bechtel.

Rene just confirmed something that I had already been hearing on the street.
I don't have a feel for the timing, and can't even handicap the odds, but
that's the story. By the way, I am hearing that Shell plans to keep their
offshore pipe because (1) it is critical to their deepwater activities, and
(2) not necessarily an advantage for Intergen's power generation plans.

I'll let you know if/when I hear from Charlie, or pick up any other scoop.

JNG