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Enron Mail |
I know it must be frustrating being a ocean away and not really knowing what is going on. I can assure you that at times I too feel that I do not know everything that is going and that is probably correct. I can tell you that Jeff McMahon did receive the offer from the Royal Bank of Scotland at or around RAB. I have supplied him the potential financial impact of Enron accepting that offer. As of yesterday no decision had been made about responding to their offer. I suspect that a decision should be made early next week. I would appreciate your thoughts as soon as you can supply them to me.
Ken Lay and Dynegy have both characterised Enron's investments in water assets as non-core which means of cource that they will be divested in due time. I would think that that would be the final straw that triggers the goodwill impairment. We all recommended that if Enron could not support the goodwill remaining on the books then we should proceed with trying to sell Wessex at or around RAB. That is where we are right now. Again, please send me your comments. I would try to keep this confidential since we have not yet made a descision. I am sorry if I have not done a good job of communicating with you the past few weeks. Things are quite hectic as you can imagine. -----Original Message----- From: Lisa Hobbs <lisa.hobbs@wessexwater.co.uk<@ENRON On Behalf Of Colin Skellett <colin.skellett@wessexwater.co.uk< Sent: Friday, November 16, 2001 7:26 AM To: Horton, Stanley Cc: John L Garrison (E-mail) Subject: Wessex Weekly Update Stan, 1. There is still considerable speculation that Wessex is to be sold by Enron. Bill Alexander, CEO of Thames Water is quoted as saying "We cannot offer as much as Enron paid but we can make Enron a better company". Since Thames is well behind Wessex in all the efficiency and service comparators, it is difficult to see quite how he intends to improve Wessex! Any proposal by another UK water and wastewater company to buy Wessex would trigger an automatic Competition Commission reference. Previous references to the Competition Commission have resulted in such combinations not being allowed. The Director General of Water Services has said publicly that he would oppose such combinations. 2. The Royal Bank of Scotland have called to tell us "as a matter of courtesy", that they will be submitting an offer for Wessex. I believe it will be "at or around" the RAB value and will be sent to Geoff MacMahon. Our response to RBS and to others who have called has been that our understanding is that Enron are not seeking to sell Wessex at this time and to refer them to Houston. 3. We remain on course to meet the full year earnings target. This is despite having to make greater provisions than we expected to restructure Swiss Combi Technology following the decision of Andritz to terminate discussions to buy the company. 4. The ?50m index linked private placement is currently with the lawyers. We are on track to close the transaction two weeks today. 5 We will need to begin the process of renegotiating our committed bank facilities soon. We are proceeding as previously agreed with Ben Glisan. 6. We have been contacted privately by S&P who have told us that they are likely to put Wessex and AEL on credit watch (developing) to reflect the financial uncertainties around Enron and the future ownership of Wessex. Colin ********************************************************************** This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the Wessex Water IT Support Centre on: 44-1225-528888 or email support@wessexwater.co.uk This footnote also confirms that this email message has been swept by MIMEsweeper for the presence of computer viruses. www.mimesweeper.com ********************************************************************** _____________________________________________________________________ This message has been checked for all known viruses by the MessageLabs Virus Scanning Service. For further information visit http://www.messagelabs.com/stats.asp
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