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Enron Mail |
Jeff,
Following on from our brief discussion during your last visit to London, I just wanted to give you a heads-up on where we are with the Du Pont/ETOL steam/power deal given the discussions you and Harold had with them earlier in the year. Based on prior experience in getting to closure with Du Pont, there is a chance that someone senior from Du Pont will put in a call to you or maybe Lou/Tom to express disappointment on progress and encourage Enron concessions, resulting in premature deal closure for us. ETOL has tabled a blend-and-extend deal to Du Pont, in which they have shown interest to get to closure. However, they just want to transact on the major value items for themselves now and then deal with other Enron value items next year in good faith. We have indicated that we will commit Enron resource to get the whole deal done as soon as possible, specifying a Jan 01 start, and will not allow cherry picking. Whilst the overall impact to ETOL is PV neutral, the deal does substantially reduce long term volume risk on what is already a deep in the money deal for us. The motivation for DuPont is that the deal results in immediate annual savings, around $3m in 2001, which fits with their corporate goal to deliver energy savings. If you are called by Du Pont and need more info let me know. We want the whole package from them. Matthew
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