MG acquisition and EOL trades

As discussed.
---------------------- Forwarded by Stephen H Douglas/HOU/ECT on 05/25/2000
01:14 PM ---------------------------

Janine Juggins
05/25/2000 02:47 AM
To: David Forster/Corp/Enron@Enron
cc: Stephen H Douglas/HOU/ECT@ECT, Louise Kitchen/HOU/ECT@ECT, Justin
Boyd/LON/ECT@ECT
Subject: MG acquisition and EOL trades

I am aware that we will be offering some MG products (once the acquisition is
complete) via EOL and want to highlight a few issues upfront:

1. MG Limited is a SFA regulated entity
2. The intention is that the MG acquisition will be held by an off balance
sheet fund by the end of the year. This means that MG entities will not be
subsidiaries of Enron Corp. I wonder whether there are any legal or
regulatory issues arising from offering the bid/offer prices of
non-subsidiaries via EOL (or maybe a wholly owned Enron sub posts the prices
and then hedges with MG ?).

Regards
Janine