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Enron Mail |
Stan/Jeff:
I have been contacted by a number of close friends/business contacts that w= ant to put together a deal to buy a number of our smaller assets, primarily= the power assets. The strategy they have in mind is simple. They want to= offer us a lightning quick sale of a package of small non-core assets that= together would be a material deal that could be announced and help stabili= se our situation. They would then be able to manage in a more orderly mann= er either the sale or continued operation of the assets and hopefully reali= se a premium over what they pay us. They have power and energy industry ex= perience. In the interest of full disclosure, they asked me to participate= in the deal, but I have said that probably makes a negotiated deal unlikel= y given the related party concerns. I indicated if they want to do a deal,= they will have to leave me out of it. They have indicated a willingness to= conduct due diligence over ten days, sign an agreement and announce the de= al and then close by end of the year, but only if we can begin immediately.= They are assuming we would put a priority on both announcing and funding = a deal quickly. They are willing to structure around issues to meet this o= bjective. I intend to meet with these guys and make my own judgement as to the legiti= macy of the proposal. I think they are considering a transaction of betwee= n 100 - 200 million. It would probably involve a half dozen or so assets. = Not a huge deal, but it would efficiently get rid of some cats and dogs. = It probably qualifies as a "fire sale", but might make sense anyway. Your thoughts? Jim
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