|
|
Enron Mail |
Mark see the below. Any thoughts?
---------------------- Forwarded by Peter Traung/EU/Enron on 02/04/2001 16:42 --------------------------- Robbi Rossi@ENRON COMMUNICATIONS 02/04/2001 16:36 To: Peter Traung/EU/Enron@ENRON cc: Subject: Re: Take or pay/options Peter, I am not doing any deals that reference an existing or future index. The only suggestion I have is to include soft language that states that if an index develops, the parties will negotiate a mutually acceptable pricing arrangement in respect of such index. You could include possible examples of how this pricing would work. Absent an established index, however, I do not know how you could do more. Mark Taylor may have some suggestions on describing a potential index. Wish I had better answers for you! Robbi Rossi Sr. Counsel Enron Broadband Services Phone: (713) 345-7268 Fax: (713) 646-8537 Peter Traung@ENRON 04/02/01 10:21 AM To: Robbi Rossi/Enron Communications@Enron Communications cc: Subject: Take or pay/options Robbi, I hope all is well. I sent this originally to Cynthia, but realize she's away for the week. Do you have any thoughts on the issues? ---------------------- Forwarded by Peter Traung/EU/Enron on 02/04/2001 16:20 --------------------------- Enron Europe From: Peter Traung 02/04/2001 14:13 To: Cynthia Harkness/Enron Communications@Enron Communications cc: Subject: Take or pay/options Cynthia, in another one of these deals (like Storm, Carrier 1 etc) we're trying to get Swedish incumbent Telia to agree to apply an index that would apply after the first year or years. In the first period, there would be agreed set of declining prices. Thereafter, we're discussing a structure where we would be able - up to certain volumes - to buy at "market minus X percent". Now, I understand there is no usable index at this time, but if possible I would like to give an agreement like this some backbone by identifying the type of index that we would use. That could be by reference to the publisher of the index, types of products etc. (There would of course have to be a fall-back in case the market doesn't delevop as we hope and there is no index when we need it.) Do you have any thoughts on this based on your experience, for example as to likely publishers of an index? Or any index, for example in gas or power, that could be used as an example? Also, the fall back currently discussed is in the form of obtaining, say, three quotes and fixing the price to the lowest or middle quote, etc. This is not a very firm structure, and can be easily blocked/delayed by both parties. I'm also not particularly excited about linking any kind of firm commitment on our part to such a structure. Are you using anything like this in the US and do you have any better alternatiives?
|