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Enron Mail |
Richard,
At an earliier time in the NSM cases, I thought that we might argue that Enron simply had nothing to do with the A and B bond offerings, that ECT Securities' name appeared on the cover but Enron did nothing else. Whether or not that would be a good position to take, it is clear to me that the evidence will not support it. Enron did a great deal of diligence starting in June of 1997 and continuing well after it became an "underwriter" in November 1997 (after which, among other things, Enron received and commented on drafts of the offering documents and road show slides.) While we could argue that we were only looking out for ourselves, I have no confidence that a jury would buy that; and, in any event, I think it would be very unattractive for us to say that we put our name on the cover just to get a fee and never did anything at all to fullfill the duties of an underwriter. Instead I think we should contend that Enron did a hell of a lot of work on this transaction, looking into many differesnt aspects of the deal, that Enron believed what it found and was told, that Enron asked a lot of questions of Schultes, Healsey, Stickler, and Busse, that Enron believed and relied on them, and that Enron invested $30 million of its own money (more than the plaintiffs) because Enron sincerely believed in the deal.. We know now that some of the things in the offering documents and road show slides were not right, but Enron learned that only five or six months after the investors, including Enron, put their money in. On the basis of our meetings, I have asked Brian to take some time to put down on paper an itemization of what Enron did to investigate the NSM transaction. A preliminary draft is attached. I have asked Brian to go back and add names of Enron and outside people involved in each of the analyses or investigations that he has listed. ................................................ ALSCHULER GROSSMAN STEIN & KAHAN LLP ATTORNEYS AT LAW www.agsk.com 2049 Century Park East Thirty-Ninth Floor Los Angeles, CA 90067-3213 Tel 310-277-1226 Fax 310-552-6077 This transmission is intended only for the use of the addressee and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately via e-mail at postmaster@agsk.com or by telephone at 310-277-1226. Thank you. ............................................... - Enclosed.txt - nsmddsummary.doc
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