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Enron Mail |
The Enron Dabhol team intends to meet with GE and Bechtel early next week a=
nd seek/obtain their approval on putting a joint offer on the table regardi= ng what we would accept for our Dabhol investment. This will include price = and other terms of the offer. We need to buy some time for the sponsor meet= ings to occur next week as well as correctly position the current status in= the press. Currently, there is considerable Indian and international wire = service press that is saying that Enron, GE and Bechtel have agreed to part= icipate in an equity sale on the terms and for the price range outlined by = the Indian banks. This is clearly not the case, and I recommend we give a f= irm push back on this, while keeping the door open for a subsequent offer f= rom the sponsors. Below is a letter I intend to send to the Indian banks on= Tuesday morning, India time. The summary of the letter is that it tells th= e Indian banks that we are meeting with Enron, GE and Bechtel next week and= will be jointly deciding our next steps, including what we are willing and= not willing to do. And we will communicate this back to the banks after ou= r meetings next week. Letter will go to IDBI, ICICI and State Bank of India. "Gentlemen: I trust your Diwali holiday season was enjoyable, and I wish each of you a = very happy and successful year ahead.=20 Following our meetings in Singapore, we will be meeting jointly with the of= fshore sponsors to discuss the next steps with them and get their approval = on how to proceed. These meetings will discuss the various options availabl= e to the offshore sponsors that we have mentioned to you in the past, inclu= ding whether they wish to proceed with a due diligence process and on what = terms, especially given the very low indications of value proposed by the I= ndian financial institutions in Singapore as well as the absence of funding= of ongoing costs of Dabhol Power by the lenders. Until we have those offsh= ore sponsor meetings, we will not rule out any possibilities and will work = for the best possible outcome that protects the economic value in the Dabho= l project. =20 As you are aware, just as this past week was a major holiday week in India,= this current week is a major holiday week in the United States. Thus our m= eetings with the offshore sponsors are scheduled for November 26 through 29= in the U.S.=20 As soon as the offshore sponsors have formulated their views, we will commu= nicate the same to you. I anticipate this will be during the week of Decemb= er 3. Regards, K. Wade Cline cc: =09Mr. Engineer, Tata Power =09Mr. Shahi, BSES"
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