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arnold-j/deleted_items/726.	subject: RE: First Call Associates Contact Information content: John, You suggested that I contact you today to see if you would have an interest in talking about our retained client's interest in you. Are you ready? Adrian -----Original Message----- From: Adrian Clark [mailto:[email protected]] Sent: Friday, November 09, 2001 9:56 AM To: '[email protected]' Subject: First Call Associates Contact Information John, I am the executive recruiter you spoke with today about a new job opportunity. Thanks very much for your time. As discussed, I've attached my contact information. If by Monday you find yourself in a position where you would be interested in discussing our retained client's interest in you, please let me know when you are available to talk. If you have a prepared resume, please send that to me as well. Be assured that our discussions will be completely confidential. You can find more information about my firm at www.firstcallassociates.com. We are very familiar with the nuances of the energy trading business and have built relationships with many energy companies in North America enabling us to present qualified employees for their consideration. In the meantime, most of our candidates (as you were), come referred to us by people we have worked with in the past. If you know any good people in front, mid or back office positions who may be interested in new job opportunities, let me know or feel free to pass along my name. Any referrals that result in placements will not be forgotten. Thanks again. << Message: Adrian Clark >> Adrian Clark Director First Call Associates, Inc. 8 Andrew Dr. Canton, CT 06019 (860)693-4122 (860)693-4118 (fax)	[email protected]	[email protected]
arnold-j/deleted_items/727.	subject: content: Wishing everyone (even those I forgot to put on the list) a very safe and joyous Thanksgiving Holiday. Best Wishes, Bill Perkins P.S I can be reached via cell phone if needed. - William Perkins.vcf	[email protected]	beale'.'[email protected], [email protected], [email protected],
arnold-j/deleted_items/728.	subject: FW: content: got this from late friday. have you ever heard of him ? -----Original Message----- From: jeff lawson [mailto:[email protected]] Sent: Wednesday, November 21, 2001 2:13 PM To: Zipper, Andy Subject: Fuck you, you piece of shit. I can't wait to see you go down with the ship like all the other vermin. Smug, paranoid, unhappy mother fucker. Eat shit. __________________________________________________ Do You Yahoo!? Yahoo! GeoCities - quick and easy web site hosting, just $8.95/month. http://geocities.yahoo.com/ps/info1	[email protected]	[email protected]
arnold-j/deleted_items/729.	subject: FW: FW: TOP 50 GAS CPS - AS OF 11-15-01 content: John, Attached is the Daily Counterparty Report. If you have any questions, call me. Jennifer 3-5824 -----Original Message----- From: Sweitzer, Tara Sent: Friday, November 16, 2001 12:00 PM To: Denny, Jennifer; Puthigai, Savita; Moorer, Torrey; Johnson, Adam; George, Fraisy Subject: FW: TOP 50 GAS CPS - AS OF 11-15-01 Jennifer, The Arnold report has been reviewed and looks good. Thanks Tara	[email protected]	[email protected]
arnold-j/deleted_items/73.	subject: RE: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT content: that means nothing..uk is giving away boxter for new employees ans slicing 10% at same time -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 11:48 AM To: Fraser, Jennifer Subject: RE: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT no way. we're still paying $5000 for new employee referrals -----Original Message----- From: Fraser, Jennifer Sent: Monday, October 08, 2001 10:18 AM To: Arnold, John Subject: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT YA HEARING ANYTHING ON THIS GEORGE DOWN--CRUDE FLOOR EVACUATED AND BROUGHT BACK	[email protected]	[email protected]
arnold-j/deleted_items/730.	subject: RE: NG deal in California content: custy interest from sell side? or buy? sounds like the producers are pretty hedged? what do you think of the fact that production is disappointing? that fact is keeping some from selling more (my guys).. but i argue that its already priced into the curve.. and economic outlook overwhelms.. ?? -----Original Message----- From: Arnold, John Sent: Tuesday, October 30, 2001 7:51 AM To: Abramo, Caroline Subject: RE: NG deal in California not much from customers lately. Customers waiting for market to stabilize before doing any hedging -----Original Message----- From: Abramo, Caroline Sent: Tuesday, October 30, 2001 6:43 AM To: Arnold, John Subject: RE: NG deal in California morning.. i wrote the top and robyn bottom.. we sent the bottom part to the customer who brought the article to our attention.. I'd like to say i read the gas daily everyday but i miss it a lot.. there are a few things going on.. the client is long cy02/short cy03 socal.. and the deal last week impacts that position.. thats their interest. our interest is whether or not there are more of these deals coming.. which i was trying to figure out. what have you been seeing flow-wise lately? -----Original Message----- From: Arnold, John Sent: Tuesday, October 30, 2001 7:34 AM To: Abramo, Caroline Subject: RE: NG deal in California who wrote the market commentary are at the bottom of this and who wrote the rest? -----Original Message----- From: Abramo, Caroline Sent: Monday, October 29, 2001 4:44 PM To: Arnold, John; Maggi, Mike Cc: Quigley, Dutch; Griffith, John; Zivic, Robyn Subject: FW: NG deal in California sorry not to send this earlier.. i checked out the dept water resources site.. (wwwowe.water.ca.gov).. nothing too illuminating except that their power costs have come down from over $300 in march to$45 this month but due to the nature the borrowing costs associated with the LT contracts, they will not be able to pass on much savings to consumers (gotta love that). we were supposed to have received a copy of all their LT purchases in July. checking what happened there. we know that there were 54 contracts signed .. half linked to gas which covered 1/3 of cali's total needs (looks like for 10 years). some left open the possibility of the state procuring gas supplies for the plants.. dwr has signed 6 agreements w/ gas suppliers..pretty sure cali uses 25,000-45,000 MW per year which is about 70 contracts a day in gas terms. If they locked in 1/3.. it would be about 25/day.. the deal they just did was about 16/day for just cal02..probably waiting for curve to flatten further to do more.. they purchased another 500 MW in Aug - the 17th (all 10-12 years)..and to date it looks like they have not purchased anything (have been selling into the grid daily) but not liquidating any previously negotiated LT deals (LT is anything beyond 3 months). it sounds like they are planning on buying more of their gas requirements.. Sempra (who has LT power contracts with DWR and gives them the ability to buy 80% of their gas) said DWR had not purchased any gas yet. Pls note story on page 5 & 6 of todays gas daily... mentions California Dept of Water looking to hedge gas purchases for long-term contracts. over the past few days we have seen Major Inv. Bk Buying Cal 02 Nymex Calls and the same bank buying Cal 02 Socal basis calls - very good size This, we believe, is a hedge for this DWR story. The article mentions that they were "looking at ways to expand its gas purchases". The article does not mention, nor do we know, how far out they are looking to purchase. Socal basis has moved on the back of this deal.... Last week: Cal 02 = 9 cents Cal 03 = 20 cents Today Cal 02 = 18.5 cents Cal 03 = 22 cents....so the spread has moved from 11 cent contango to 3.5 cents. <<102401.pdf>> Other than the call buying we saw related to this deal, the rest of the flow we are seeing is : sellers of vol. Last night settles: Cal 02 vol 51.5% and Cal 03 vol 37.25% - and we are 1 % lower in Cal 02 since the open , and 0.5 % lower Cal 03.	[email protected]	[email protected]
arnold-j/deleted_items/731.	subject: S+P Commodity Index content: hi- not sure if you saw this with all the crap going on lately or have seen these contracts trading..one of the traders in Calgary called me Friday- one of his clients called asking about this indirectly.. said that he had heard of a $1B fund that was being set up to replicate the index.. the index is 17.7% nat gas (the highest % of any commodity).. the client wondered if that had anything to do with the nat gas rally! i am trying to find out info on this $1 B fund.. no luck yet.. it would have a nice impact on the market if the fund had to buy 177M of nat gas contracts- 17,700 contracts in first 2 months..look at the 2 websites- www.nybot.com <http://www.nybot.com> (the futures and options) are traded there and the s+p site www.spglobal.com <http://www.spglobal.com>... the way they manage the futures is interesting.. basic weightings: energy: 44.29% (natty-17.7, unleaded-9.7%, heat- 12.9, crude-4.12) grains- 19.28% meats- 10.98% metals- 7.96% softs- 11.98% fibers- 5.51% please let me know if you have any info on this. thanks, c S&P and NYBOT Launch New Index Futures and Options Contracts New York, NY, October 19, 2001 - The New York Board of Trade (NYBOT) , in partnership with Standard & Poor's, began trading futures contracts this morning on the S&P Commodity Index (SPCI) - a new standard for commodities pricing. Officials from the New York City Mayor's Office for Economic Development as well as NYBOT and Standard & Poor's presided over the launch. Standard & Poor's, a leading provider of global financial information and investment analysis, and the New York Board of Trade, a global marketplace for alternative investment products, developed the SPCI to bring greater definition to traded commodities as an investable asset class. The SPCI was introduced at a ceremony at NYBOT on August 9, 2001. The SPCI futures and options allow managers and investors to add real diversification to their portfolios through a single, transparent access point to the investment opportunities found in commodity futures markets. "The launch of this new product so soon after the events of September 11, and on a trading floor so imaginatively developed before the event, allowing NYBOT to start trading so soon after the loss of its facility in lower Manhattan, is a testament to the strength and the resilience of New Yorkers," said Michael G. Carey, President, New York City Economic Development Corporation. "Let no one doubt that New York is and continues to be the financial and trading capital of the world." "To contribute successfully to long-term portfolio goals, an alternative asset should have certain key characteristics, namely a proper benchmark, transparency, liquidity, simplicity, cost efficiency and flexible trading capabilities," said NYBOT President and CEO Mark D. Fichtel. "SPCI futures and options are among the few investment instruments that meet all the criteria for a real alternative asset. We believe that these new contracts will prove particularly valuable to investors and managers who need alternative investment strategies in these difficult economic times." The NYBOT SPCI futures contract lists six active contract months (January, February, April, June, August, November). Expiration is the second Friday of the listed futures contract month, and the contract is cash settled. The futures contract is valued at $100 x the Index (current contract value approximately $100,000). Trading hours initially will be 10:00 AM to 4:00 PM (New York Time). Options on futures are also offered (see contract specifications). "SPCI futures and options give investors a direct means to obtain exposure to a diversified commodity basket," said Robert Shakotko, Standard & Poor's Managing Director of Index Services. "Investors around the world recognize the S&P reputation for equity indices and index products. We now bring these same business strengths to commodities." The SPCI tracks 17 commodities in six sectors including grains, meat and livestock, metals, softs (coffee, sugar, cocoa), fibers, and energy. The index utilizes real-time prices of the relevant futures contracts traded on the commodities futures markets in New York and Chicago. Key features of the SPCI include its geometric calculation methodology and a weighting adjustment that eliminates double counting of upstream and downstream commodities. The new SPCI futures and options contracts will support and enhance other index-linked investment products. They offer an easy and efficient way to manage commodity index funds, commodity-linked insurance products, or commodity exposure in multi-asset products. As with its equity indices, Standard & Poor's has initiated a licensing program for the SPCI directed at financial institutions that might use the new commodity index as part of an innovative investment product. End-of-day index values and index history are available through both the S&P Index Services website at www.spglobal.com <http://www.spglobal.com/indexmaincommodity.html> and NYBOT's Website at www.nybot.com <http://www.nybot.com/>. The SPCI is calculated every 15 seconds and is available through traditional real-time quote vendors via the NYBOT; the ticker symbol will be 'I'. Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), provides independent financial information, analytical services, and credit ratings to the world's financial markets. Among the company's many products are the S&P Global 1200, the first real-time, global equity index, the S&P 500, the premier U.S. portfolio index, and credit ratings on more than 220,000 securities and funds worldwide. With more than 5,000 employees located in 18 countries, Standard & Poor's is an integral part of the world's financial architecture. For more information, visit the Standard & Poor's Website at www.standardandpoors.com <http://www.standardandpoors.com/>. The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar and Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges and their subsidiaries and divisions NYBOT offers an expanding range of agricultural, currency and index products. Information about the New York Board of Trade can be found at www.nybot.com <http://www.nybot.com/>.	[email protected]	[email protected]
arnold-j/deleted_items/732.	subject: A $5 Gift to Spend on Your Wish List content: Dear Amazon.com Customer, The holiday gift-giving season is almost here, but before you start making lists and checking them twice, here's an incentive to cross a few things off your own list--$5 to spend toward a purchase of $50 or more from your Amazon.com Wish List. http://www.amazon.com/wishlist While you're there, it's also an ideal time to get your Wish List up to date. You can delete any outdated items, add some new items from the handy list of personal recommendations, and easily send your Wish List to family and friends to use during the upcoming holiday season. So grant yourself a wish today--just check your Wish List, add the items you want to your Shopping Cart, and use the claim code below to save $5 on your purchase of $50 or more. But don't delay--this offer expires November 8, 2001. http://www.amazon.com/wishlist Sincerely, Matt Williams Director (and Avid Wisher) Amazon.com Don't delete. This is your $5 Amazon.com promotional certificate. *********************************************************************** Amount: $5 off your order of $50 or more at Amazon.com Claim Code: WL79-GXT5SD-XGPCG5 Expires: November 8, 2001 To redeem your $5 promotional certificate, simply: 1. Go to your Amazon.com Wish List. 2. Select the items you want (totaling $50 or more, not including shipping or tax) and add them to your Shopping Cart. 3. Click the "Proceed to checkout" button. You'll be taken to the checkout page, where you can review your order and select shipping options. 4. Enter your promotional claim code in the space provided in the right column (located below your order total) and click the Apply button. The certificate will be redeemed and the page will refresh with your revised order total. 5. Click the "Place your order" button. You're done! If you want to review the details of your order again, click the Your Account button in the upper right corner of the page. The fine print: Offer must be redeemed at http://www.amazon.com toward the purchase of products sold by Amazon.com and listed in Amazon.com's online catalogs. Offer cannot be redeemed at Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.co.jp, or any other Web site operated by Amazon.com, its affiliates, or third-party merchants accessible from our site (including, for example, our Health & Beauty store operated by drugstore.com). Offer not valid in Amazon Marketplace, Auctions, or zShops. Purchase must total $50 or more, excluding shipping charges and tax. Please use our Shopping Cart rather than our 1-Click ordering method if you want to apply this promotional certificate. You must pay for the order with a credit card. If you return items purchased with a promotional certificate, you will not receive a refund for the amount of the promotional certificate. Limit one offer per customer and one offer per purchase. Offer not valid with other promotional certificates. Offer must be applied at the time of the order and cannot be applied to orders already placed with us. Offer cash value is 1/10th of one cent and is not for resale. This promotional certificate will expire at 11:59 p.m. PST on November 8, 2001. If you have any questions, please see the Help section of our site: http://www.amazon.com/help We hope you enjoyed receiving this message. However, if you'd rather not receive future e-mails of this sort from Amazon.com, please use the link below or click the Your Account button in the top right corner of any page on the Amazon.com Web site. In the Personal Information box under the Account Settings heading, click the "Update your communication preferences" link. http://www.amazon.com/your-account/ Please note that this message was sent to the following e-mail address: [email protected]	[email protected]	[email protected]
arnold-j/deleted_items/733.	subject: content: I think you have my necklace. I need to get it from you sometime. (just kidding)	[email protected]	[email protected]
arnold-j/deleted_items/734.	subject: content: You sold 250 TAS Futures with EAGLE...I gave them up to EDF MAN #5055 You bought 250 LD Swaps @ 10/26 SP from Engage Canada. Thanks	[email protected]	[email protected]
arnold-j/deleted_items/735.	subject: daily hoil & unlded cahrts 11/26 content: The information contained herein is based on sources that we believe to be reliable, but we do not represent that it is accurate or complete. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy any financial instruments discussed herein. Any opinions expressed herein are solely those of the author. As such, they may differ in material respects from those of, or expressed or published by on behalf of Carr Futures or its officers, directors, employees or affiliates. ? 2001 Carr Futures The charts are now available on the web by clicking on the hot link(s) contained in this email. If for any reason you are unable to receive the charts via the web, please contact me via email and I will email the charts to you as attachments. Distillate http://www.carrfut.com/research/Energy1/hoil33.pdf Unleaded http://www.carrfut.com/research/Energy1/unlded33.pdf J	[email protected]	[email protected]
arnold-j/deleted_items/736.	subject: Nat Gas market analysis for 11-26-01 content: Attached please find the Natural Gas market analysis for today. Thanks, Bob McKinney - 11-26-01 Nat Gas.doc	[email protected]	[email protected]
arnold-j/deleted_items/737.	subject: daily charts 11/26 content: The information contained herein is based on sources that we believe to be reliable, but we do not represent that it is accurate or complete. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy any financial instruments discussed herein. Any opinions expressed herein are solely those of the author. As such, they may differ in material respects from those of, or expressed or published by on behalf of Carr Futures or its officers, directors, employees or affiliates. ? 2001 Carr Futures The charts are now available on the web by clicking on the hot link(s) contained in this email. If for any reason you are unable to receive the charts via the web, please contact me via email and I will email the charts to you as attachments. Crude http://www.carrfut.com/research/Energy1/crude33.pdf Natural Gas http://www.carrfut.com/research/Energy1/ngas33.pdf Jan WTI/Brent Spread http://www.carrfut.com/research/Energy1/clf-qof.pdf Jan Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf Jan Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf Dec/May Heat Spread http://www.carrfut.com/research/Energy1/hoz-hok.pdf Jan/Feb Heat Spread http://www.carrfut.com/research/Energy1/hof-hog.pdf Dec Gas/Heat Spread http://www.carrfut.com/research/Energy1/huz-hoz.pdf Feb Gas/Heat Spread http://www.carrfut.com/research/Energy1/hug-hog.pdf Dec/Mar Unlead Spread http://www.carrfut.com/research/Energy1/huz-huh.pdf Nat Gas Strip Matrix http://www.carrfut.com/research/Energy1/StripmatrixNG33.pdf Nat Gas Spread Matrix http://www.carrfut.com/research/Energy1/SpreadmatrixNG33.pdf Crude and Products Spread Matrix http://www.carrfut.com/research/Energy1/SpreadmatrixCL33.pdf Scott Mollner Recomendation http://www.carrfut.com/research/Energy1/recom11-26-01.pdf	[email protected]	[email protected]
arnold-j/deleted_items/738.	subject: Free Shipping Ends December 4--Shop Today content: [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Search Amazon.com for: We hope you enjoyed receiving this message. However, if you'd rather not receive future e-mails of this sort from Amazon.com, please visit the Help page Updating Subscriptions and Communication Preferences and click the Customer Communication Preferences link. Please note that this e-mail was sent to the following address: [email protected] [IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/739.	subject: Upcoming Economic Development Events content: This winter will bring a number of opportunities to get the best training in the field of economic development. In January there are opportunities to learn the field for the first time, opportunities to learn how convention centers and stadiums can assist the development of your community, learn how to practice advanced economic development. If You Build It, Will They Come? Find Out Jan. 23-26 in Tempe Is your community planning on building a sports facility or conference center? IEDC's annual If You Build It,Will They Come? conference, scheduled for Jan. 23-26 in Tempe, Ariz., will focus on all aspects of creating these facilities, from feasibility studies to management. This year, attendees will get to hear from communities that used lessons learned at earlier conferences and have recently completed projects. Representatives from the Dayton Dragons (a minor league baseball team in Ohio) and the city of Sanford, Fla., (a community that just completed a conference center) will discuss their projects and share important lessons learned. Act before December to guarantee a hotel room and early registration discounts! Visit http://www.iedconline.org/tempe/home.html for details. IEDC Economic Development Leadership Summit Planned for January in Monterey The IEDC 2002 Economic Development Leadership Summit will take place January 16??"19 at the Monterey Doubletree Hotel in Monterey, Calif. This event is open to all certified economic development professionals, IEDC board members and past board members and past chairs. This years Leadership Summit is designed to provide you with the opportunity to hear from your peers and guest presenters and to interact with them in both formal and informal settings. Two special guests will join the summit and lead discussions on topics of high importance. Rob DeRocker, executive vice President of Development Counsellors International, will lead a session titled, Rethinking Economic Development in a World That Changed. Later, Dr. David A. Sampson, assistant secretary of commerce for economic development, will take part in a roundtable discussion on how the federal government has and is responding to the events of the past few months. Please mark January 16 to19 on your calendar and join us in Monterey. For more information, please contact Jeff Stone at 202/942-9471 or [email protected] or go to http://www.iedconline.org/monterey/home.html for more information. IEDC Course Calendar of Events Unless otherwise indicated, please call 202/223-7800 for information about conferences and training courses, or follow the available links to the IEDC Web site. This course is for the person starting in the economic development profession. This gets good reviews by those entry-level practitioners who attend this event.Introduction to Economic Development Training Course January 27-30, 2002 Tempe, AZ The Congress is on the verge of proposing a new round of military base closures. What will that mean to your community? If you have an active duty facility that is not in danger, what are the opportunities for your community. This conference is a must-do for communities and their military counterparts.NAID Winter Conference: Challenges Ahead January 27-29, 2002 Tempe, AZ The primary business of economic development is keeping what you have. Learn first hand on how to keep your existing businesses in your community. This is a must do course for community leaders of all kinds.Business Retention & Expansion Training Course March 5-6, 2002 Arlington, VA Upcoming Legislative Summit This is the definitive program for economic developers who need to know where the money is and how to find it in Washington. Last year the administration was new and the development of program objectives and new approaches had not yet begun. Last year we were not facing a significant slow down in the economy. Last year we did not have physical attacks by terrorists on two of our largest cities and the resulting economic conditions. What are the Congressional and Administration plans to rebuild our economy. There has been a melt-down in the dot.com world. What are the new sectors that will bring real promise for the future. This conference could yield real benefits to your community. 2002 Economic Development Summit March 6-8, 2002 Arlington, VA The International Economic Development Council (IEDC) http://www.iedconline.org/ is the recent merger of The Council For Urban Economic Development (CUED) http://www.cued.org , founded in 1967, and the American Economic Development Council, http://www.aedc.org/ the oldest economic development membership association in the United States. Together this new organization has over 4000 economic development professionals as members. IEDC provides information to its members who build local economies through tools used to create, attract, and retain jobs. IEDC also manages the National Association of Installation Developers (NAID) http://www.naid.org . NAID brings together public and private sector professionals involved with the redevelopment of closing military bases and serves the needs of communities with active-duty military bases in those areas of public private partnerships and privatization of military infrastructure. IEDC is also a supporter and sponsor of the Bollinger Foundation. The Bollinger Foundation is a unique foundation dedicated to assisting families who have lost one or more of their parents and where one of the worked in the field of community development, public housing or economic development http://www.cued.org/bollinger/ .	[email protected]	(Recipient list suppressed)@ENRON <??S(Recipient list suppressed)@ENRON>
arnold-j/deleted_items/74.	subject: Credit Watch List--Week of 10/8/01 content: Attached is a revised Credit Watch listing for the week of 10/08/01. Please note that Federal-Mogul Corp. was placed on "NO TRADES". If there are any personnel in your group that were not included in this distribution, please insure that they receive a copy of this report. To add additional people to this distribution, or if this report has been sent to you in error, please contact Veronica Espinoza at x6-6002. For other questions, please contact Jason R. Williams at x5-3923, Veronica Espinoza at x6-6002 or Darren Vanek at x3-1436.	[email protected]	[email protected], [email protected], [email protected],
arnold-j/deleted_items/740.	subject: content: Did you go this morning? If not, do you want to go after work?	houston <[email protected]>	[email protected]
arnold-j/deleted_items/741.	subject: Have your FREE Cell Phone in 60 Seconds content: We are proud to announce another outstanding product for your consideration. MidNiteMail.com is dedicated to bringing you the best bargains, deals, new ideas, and offers that save you both time and money. Our research team strives to bring you offers that you may otherwise have missed. We are leaders in the permission based email marketing arena and we want your experience with MidNiteMail to be as positive and rewarding as possible. We think that you will find our our periodic emails both informative and exciting. However, your privacy is very important to us. You registered to receive our emails at MidNiteMail.com or by subscribing through one of our marketing partners. If for any reason you do not wish to receive our emails please click here and you will be removed within 3 business days. Free Cell Phone From Paragon Cellular[IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/742.	subject: 44% off wine, Beaucastel and more!!!! content: Wine Library.com - E-Mail Alert!!! To Place an order . . . PLEASE CALL 973-376-0005 ask for Order Dept.www.winelibrary.com=20 or e-mail us at [email protected]=20 1. #16583 - Beaucastel 1999 Chateauneuf Du Pape Red - $45.99 On Sale =20 91-95 Points - Robert Parker "In 1999, Beaucastel`s red wine yields were average, a small 25 hectoliters= per hectare. The 1999 Beaucastel Chateauneuf du Pape is a profoundly rich= , concentrated, classic vin de garde. Made from 30% Grenache, 30% Mourvedr= e, 10% Syrah, 10% Counoise, and the remainder a blend of other varietals, i= t is one of the blackest, most opaque-colored Beaucastels of the last decad= e. The bouquet offers aromas of licorice, roasted meats, black cherry and = blackberry fruit, and a truffle-like earthy note. Broodingly backward, for= midable endowed, powerful, and extremely tannic, it will require 8-10 years= of cellaring, and should age effortlessly for three decades or more. Fran= cois Perrin compares it to the thrilling 1990, but at this stage, it appear= s to me to be more structured and closed than the 1990 was at a similar age= . In any event, it is a great wine, but readers older than 55 should think= twice before investing in such a backward vintage."Have your own tasting n= otes? Post your own review of this wine on Wine Library.com!=20 2. #12285 - Beaucastel 1999 Chateauneuf Du Pape White - $47.99 On Sale =20 91 Points - Robert Parker "Beaucastel`s 1999 Chateauneuf de Pape blanc is a terrific success, not sur= prising in view of the fact that all recent vintages have been gorgeous. I= t is made from 80% Roussanne and 20% Grenache Blanc, fermented in 80% cuves= and 20% barrels, of which 10% are new, and bottled with minimal clarificat= ion. Like a top Hermitage, the Perrins subscribe to the theory (and I tend= to agree) that this is a wine to drink during its first 2-4 years of life,= or forget it for at least a decade. It takes on an oxidized mid-life cris= is between 5-10 years of age, and re-emerges as a completely different anim= al around age ten. Of course, each vintage has its own track record, but i= t is a fascinating wine to drink young, as well as an impressive one to hav= e after ten years. The light gold-colored 1999 reveals intense marmalade a= nd rose petal, honeyed richness with a touch of spice and toast. Thick and= unctuously-textured, but supported by excellent acidity, it can be drunk o= ver the next 4! -5 years, and then ignored for a decade. It will keep for = 20 years."Have your own tasting notes? Post your own review of this wine on= Wine Library.com!=20 3. #13869 - Produttori del Barbaresco 1996 - $22.99 (comes to $18.39 when y= ou buy a case) =20 91 Points - Wine Library For months now everyone has been asking for a great Barbaresco buy and whil= e we have had some great buys in Barolo, here is our first in Barbaresco. T= he 1996 Produttori is a massive wine with all the flavors and complexity of= a wine twice its price. If you are looking for a drinkable red wine that = has a silky smooth finish and a very strong body,here it is!Have your own t= asting notes? Post your own review of this wine on Wine Library.com!=20 ***************************** Hot Bordeaux Buy! - 44 % Off (normal price - $124.99!) This could be one of the best buys all year . . . at possibly the best pric= e in the country!!! 4. #12414 - Chateau Cos D`Estournel 1996 - $69.99 On Sale =20 95 Points - Wine Spectator "A classy and impressive young Bordeaux from an appellation that stepped up= in '96. Dark-colored, with plenty of currant and spice aromas, the wine is= full-bodied, with very velvety tannins and allspice, berry and currant fla= vors. Long, long finish. One of the wines of the vintage, it's a beauty.Bes= t after 2005." Have your own tasting notes? Post your own review of this w= ine on Wine Library.com!=20 ***************************** 5. #13927 - Produttori del Barbaresco 1998 Nebbiolo - $13.99 (comes to $11.= 99 when you buy a case) =20 This is a great value! The 1998 Produttori is a wine that even a Cabernet d= rinker will love. A full bodied wine that in this day and age is true steal= ! Ripe strawberry flavors make this a great dinner wine. If you are search= ing for a perfect red wine for pasta and Monday Night Football, don't look = any further!Have your own tasting notes? Post your own review of this wine = on Wine Library.com!=20 6. #16449 - Parusso 2000 Barbera D`Alba Ornati - $18.99 (comes to $15.19 wh= en you buy a case) =20 The Parusso name is now famous with quality and consistency. The 2000 Barbe= ra Ornati is a special wine, huge ripe fruit but lots of spice and pepper w= hich is unusual for this type of wine. Parusso is making great wine in Pei= dmont and this is one of their very best values. Have your own tasting note= s? Post your own review of this wine on Wine Library.com!=20 7. #16407 - Le Corti 1998 "Don Tommaso" Chianti Classico - $21.99 (comes to= $17.59 when you buy a case) =20 91 Points - Wine Spectator "Intense aromas of berries, cherries and tobacco. Full-bodied, with loads o= f fruit, velvety tannins and a long, flavorful finish. Drink now through 20= 06." Have your own tasting notes? Post your own review of this wine on Win= e Library.com!=20 8. #16599 - Robert Foley Claret 1999 - $149.99 On Sale =20 93 Points - Wine Spectator Limit 4 bottles per customer please! "Most of Robert Foley's debut 1998 Claret perished in a warehouse fire a ye= ar ago, so he is calling this wine his second first-release. The winemaker = for Pride Mountain Vineyards made a delicious 1998 vintage, but due to its = loss, I never printed a formal review. As only a few bottles survived the f= ire, the 1999 vintage will be the first wine people taste and it's a dandy.= Made from grapes grown at Pride, it's a sleek, plush, tightly focused wine= , loaded with spicy herb-laced cherry, plum and currant fruit flavors, and = showing a long, persistent finish. The wine is a blend of Cabernet and Merl= ot, chosen from the best lots of wine made from Pride Mountain Vineyard." -= James Laube - Wine Spectator"Have your own tasting notes? Post your own re= view of this wine on Wine Library.com!=20 9. #13839 - Heidsieck "Diamant" Rose 1988 - $74.99 (comes to $59.99 when yo= u buy a case) =20 94 Points - Wine Spectator "Splendid. A contrast of fresh berry, apple and more mature elements of mus= hroom, toffee and coffee are beautifully presented on an elegant structure.= Dense, it coats the palate, with a long, long finish. Drink now. "Have you= r own tasting notes? Post your own review of this wine on Wine Library.com!	[email protected]	[email protected]
arnold-j/deleted_items/743.	subject: The Daily Quote content: [IMAGE] Quote.com	[email protected]	[email protected]
arnold-j/deleted_items/744.	subject: Register Now For Dec. 13 HedgeFund.Net Working Conference! content: The response to the December 13 HedgeFund.Net Working Conference has been overwhelming! With only a few weeks to go we encourage all interested parties to reserve their spot at the conference as soon as possible! Conference details can be seen below - or visit the link below for full details: http://www.hedgefund.net/login_conf.php3 HedgeFund.net is proud to announce the second in a series of half-day symposiums designed to educate accredited investors about the universe of hedge fund strategies and managers - the HedgeFund.Net Working Conferences. A detailed conference brochure is attached to this e-mail in an Adobe Acrobat PDF file for your review. The topic of our second event is: "Wealth Creation Strategies for All Seasons" When: Thursday , December 13, 8:00 a.m. to 1:00 p.m. Where: 780 Third Ave. (between 48th and 49th), New York, NY Who may attend: Accredited investors who pre-register with HedgeFund.net. Registration is free for hedge fund investors and money managers, but hurry, space is limited - the last conference was "sold out" and many investors had to be turned away. The HedgeFund.Net Working Conference provides a forum for a group of leading hedge fund managers to walk investors through various strategies designed to target profits in a variety of market conditions. Participating managers include: Zurich Capital Markets Gruss Arbitrage Partners Halcyon Schafer Cullen Small Cap L.P. Bookbinder Capital Management Starview Partners Fund Life Science Group Management LLC and other well known hedge fund managers! All of whom can be viewed in HedgeFund.Net's HedgePlus section. Time will be reserved to allow attendees to meet with each manager and to network with other investors and market participants. Continental breakfast and beverages will be served. The conclusion of the conference will offer additional manager discussion sessions as well as a light luncheon. Seating is limited, so please click below to register or call HedgeFund.net at (212) 888-1805 with any questions http://www.hedgefund.net/login_conf.php3 Thank you and see you there! HedgeFund.net is operated by Links Securities LLC under exclusive license. This e-mail and the attached brochure is for informational purposes only and does not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any security.	[email protected]	[email protected]
arnold-j/deleted_items/745.	subject: Last Chance for $20 Instant Rebate content: [IMAGE] =09 [IMAGE] Dear JENNIFER ARNOLD, As November comes to an end, so does y= our chance to save $20 instantly on your Quicken 2002 Deluxe upgrade. As a previous Quicken user, you're entitled to a $20= mail-in rebate. But as a Preferred Customer, you can order now and pay ju= st $39.95 with your INSTANT REBATE. That's an immediate $20 off the regul= ar price of $59.95. And there are no forms to mail in. No waiting for your= rebate to arrive. Time is running out. To take advantage of this specia= l offer you have to act fast! [IMAGE] Quicken 2002 Deluxe is packed wi= th powerful features to help give you a more complete and accurate picture= of your finances. It's easy with One Step Update,* Automatic Reconcile,* = Automatic Categorization, the new Portfolio Analyzer, Step-By-Step Budget= ing, the Capital Gains Estimator and more. And, because Quicken 2002 suppo= rts the new tax laws and includes the updated tax rates, getting every tax= break you deserve is easier too. With your INSTANT REBATE OF $20, you g= et all these great features for just $39.95! Place your order today! O= nline: www.orderquicken.com/save20 By Phone 1 (800) 366-0543 6 a.m.-6 p.m= ., Monday through Friday, Pacific Time Be sure to mention Priority Code 50= 10181 when you call. Sincerely, The Quicken Team P.S. The holidays are= fast approaching and Quicken Deluxe makes a great year-end gift. Stock up= now and take advantage of the instant rebate available only through Novem= ber 30, 2001. Instant rebate is for previous Quicken users only. Off= er valid through November 30, 2001. A shipping and handling charge of $3.9= 5 will apply. Terms, conditions, pricing, special offers, features and s= ervice options subject to change without notice. This offer cannot be com= bined with any other offer. Offer applies to Quicken 2002 Deluxe only. *I= nternet access required for all online features. Service fees may apply. = Online banking and online bill pay are subject to application approval; se= rvices and fees, if any, may vary by participating financial institutions.= ? 2001 Intuit Inc. Quicken and Intuit are registered trademarks of Int= uit Inc. All other trademarks are the sole property of their respective ow= ners. =09 [IMAGE] [IMAGE] IMPORTANT: Intuit respects the personal nature of e-mai= l communication. Every effort is made to offer only information that may be= of value to you or your business. If you do not wish to receive marketing= e-mail from Intuit in the future, please click here. If you would like t= o change your e-mail address in our database, please click here. This e-= mail was sent to the following address: [email protected] 9CD2 [IMA= GE] =09	[email protected]	[email protected]
arnold-j/deleted_items/746.	subject: Family Tree Maker Plus - the Perfect Gift Idea content: Family Tree Maker Plus, Including Your Special Gift - just $49.99 * Family Tree Maker 9 - the #1-selling family tree software * 3 months online access to Genealogy Library * EXCLUSIVE BONUS - The History Channel's "Family Tree" video * Start your holiday shopping today: http://www.Genealogy.com/ftm-8110116 * Or, call 1-800-548-1806 and mention 'priority code 8110116' THIS HOLIDAY - GIVE THE GIFT THAT CELEBRATES FAMILY As a Family Tree Maker owner, you already know how rewarding it is to collect and preserve family memories. This holiday season, you can upgrade to version 9 with Family Tree Maker Plus, and enjoy 3-months online access to Genealogy Library. Act now and we'll include The History Channel's "Family Tree" video as a special gift for you and your family. And if you're thinking of that perfect gift for friends and loved ones, you can't go wrong with Family Tree Maker Plus. It's the gift that's dedicated to family. GENEALOGY LIBRARY - THE "PLUS" IN FAMILY TREE MAKER PLUS Family Tree Maker Plus comes with a 3 month subscription to Genealogy Library - a $29.97 value. This comprehensive online resource spans over 500 years and hundreds of millions of names, providing 24-hour access to a variety of vital documents. Search marriage and military records, family histories, society journals, land records, and more - including 1850 U.S. Census images. Here you'll find the rich details that add a sense of time and place to your family story. And new Genealogy Library records are added each week, so there's always something new to discover. ORDER TODAY AND RECEIVE A SPECIAL BONUS GIFT Family Tree Maker Plus, including 3 months access to Genealogy Library, is just $49.99! And if you order now, we'll include The History Channel's "Family Tree" video - a $29.97 value - as our special gift to you. Through a host of compelling examples, this 100-minute video demonstrates the wealth of information that is now available online and through other public records. Follow along as amateur and professional genealogists uncover their personal history. Your gift of Family Tree Maker Plus - to your own family or to friends - will be appreciated long after this holiday season is over. ORDER TODAY by telephone, or online 24 hours a day: * 1-800-548-1806 (please mention "priority code 8110116") * http://www.Genealogy.com/ftm-8110116 * <A title=http://www.Genealogy.com/ href="http://www.Genealogy.com/ftm-8110116">AOL users click here</A> ================================================================= (c) Copyright 2001 Genealogy.com, LLC, a division of A&E Television Networks. All rights reserved. Family Tree Maker and Genealogy Library are registered trademarks of Genealogy.com, LLC. All other product names are the trademarks of their respective holders. ================================================================= You received this message as a registered user of Family Tree Maker and/or Genealogy.com. Please do not reply to this message, as the mailbox is not monitored. If you need to contact us, you'll get the fastest possible assistance by using the links below: To STOP receiving e-mail from us: http://www.Genealogy.com/unsubscribe.html To UPDATE your e-mail address: http://www.Genealogy.com/cgi-bin/regchange.cgi For TECHNICAL SUPPORT or CUSTOMER SERVICE: http://www.Genealogy.com/help/index.html --or-- <A title=http://www.Genealogy.com/ href="http://www.Genealogy.com/help/index.html">AOL link</A>	[email protected]	[email protected]
arnold-j/deleted_items/747.	subject: Great buys on PC accessories! content: ============================================== Buy 2 Monitors, Get Free Shipping* http://enews.buy.com/cgi-bin5/flo?y=eEtM0D4S5I0Blu0BASu0Ae ============================================== ___________________________________________________________ <<<COMPUTERS>>> ___________________________________________________________ Samsung Combo Drive CDRW/DVD-ROM 8x/4x/32x/8x buy.com price: NEW LOW PRICE! List Price: $219.00 Offers 8X CD-Recording, 4XCD-Rewriting, 32X CD-ROM Reading and 8X DVD ROM Reading. For more info about this product, click here: http://enews.buy.com/cgi-bin5/flo?y=eEtM0D4S5I0Blu086x0Ax ___________________________________________________________ Altec Lansing AVS500 5 Speaker Set - $10 MAIL-IN REBATE ($31.95 AFTER REBATE) buy.com price: $41.95 List Price: $59.99 Turn your MP3 player or CD player into a high-end sound system! 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Unless noted, prices do not include shipping and applicable sales taxes. Product quantities limited. List price refers to manufacturer's suggested retail price and may be different than actual selling prices in your area. Please visit us at buy.com or the links above for more information including latest pricing, availability, and restrictions on each offer. "buy.com" and "The Internet Superstore" are trademarks of BUY.COM Inc. ? BUY.COM Inc. 2001. All rights reserved. We respect your privacy. If you would rather not receive eMail alerting you of buy.com special offers, product announcements, and other news, just let us know by clicking here: http://enews.buy.com/cgi-bin5/profile?y=eEtM0D4S5I0BluS	[email protected]	[email protected]
arnold-j/deleted_items/748.	subject: Enron Mentions- 11/26/01 content: IN THE MONEY: Another Sign Investors Don't Trust Enron Dow Jones News Service, 11/26/01 Dynegy Board Silent On Status Of Enron Takeover >ENE DYN Dow Jones News Service, 11/26/01 Enron, Banks Formalize $690M Debt Extension To Dec. 14 Dow Jones News Service, 11/26/01 Citigroup Has $2.38B Less To Lose On Enron Due To Swaps Dow Jones Capital Markets Report, 11/26/01 Enron Is Sued Over 401(k) Plan; Plaintiffs Seek $850M Dow Jones News Service, 11/26/01 STOCKWATCH Enron falls 14 pct on mounting concerns over Dynegy deal AFX News, 11/26/01 USA: UPDATE 1-Enron shares slide lower as merger doubts intensify. Reuters English News Service, 11/26/01 USA: Enron lawsuit seen as wake-up call for pensions. Reuters English News Service, 11/26/01 USA: US Corp Bonds-Bonds tighten, analysts fret on Enron. Reuters English News Service, 11/26/01 Petrobras, Petros, close to buying Enron's stakes in CEG/CEG Rio - report AFX News, 11/26/01 TALES OF THE TAPE: Energy Traders' Perfect Storm Stalls Dow Jones News Service, 11/26/01 INDIA: UPDATE 1-India's AV Birla group denies bid for Enron unit. Reuters English News Service, 11/26/01 Enron's Stock, Bonds Drop on Concern for Dynegy Bid (Update8) Bloomberg, 11/26/01 Dynegy Bonds Slip as Enron Purchase May Harm Credit Rating Bloomberg, 11/26/01 ENRON SHARES SLIDES TO ALL-TIME LOW CBS.MarketWatch.com, 11/26/01 IN THE MONEY: Another Sign Investors Don't Trust Enron By Michael Rapoport 11/26/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) A Dow Jones Newswires Column NEW YORK -(Dow Jones)- If you needed any further proof that investors no longer trust Enron Corp. (ENE), here's another piece of evidence - one that goes to the heart of the recent plunge in the company's stock. Enron doesn't simply trade for less than its book value; it fell below that milestone weeks ago. No, now it trades for less than ONE-THIRD of its book value. That's a rare level for a company of Enron's size and prominence. And it may mean, among other things, that investors have decided that they simply can't place any further faith in the veracity of Enron's earnings and balance-sheet figures, much-revised as they've been - something that has unnerving implications for any attempt to value the company fairly. First, let's be clear about what this means. Enron stock is currently about $4 a share; the company's reported book value is about $12.90 a share. In other words, Enron stock sells for less than one-third of what shareholders would get if the company were to liquidate - were to turn all its assets into cash, pay off all its liabilities on its balance sheet and give what's left over to shareholders. This is an uncommonly dismal level for any company, even a troubled one. For comparison's sake, Dynegy Inc. (DYN), which has agreed to buy Enron, trades at about three times book value, as does El Paso Corp. (EPG), a competitor of both companies. In fact, Enron has the second-lowest price-to-book ratio of any company in the Standard & Poor's 500-stock index - only Conseco Inc. (CNC), another troubled company, is lower, by an eyelash. Part of the problem is undoubtedly the continuing fear among investors that Dynegy's agreement to buy Enron will fall apart, and the belief that Enron will have to file for bankruptcy if it does, in which case Enron shareholders would be hard-pressed to realize any value. The Dynegy deal now amounts to about $10.60 per Enron share, itself well under Enron's book value; the huge premium that level offers over Enron's current stock price is an indication of the big risk investors see that the deal won't be consummated in its current form. But given Enron's current woes, it's certainly also possible that Enron is trading at such a big discount to book value because investors don't feel they can trust the earnings and balance-sheet numbers coming out of Enron. Those numbers, after all, are the raw material that form the basis for valuing Enron, or any other company, by computing figures like price-to-book and price-to-earnings ratios. And the Enron debacle has been all about the quality of those numbers, with Enron shifting assets off its balance sheet to outside limited partnerships from which some of its executives benefitted. In terms of those numbers, the ground has shifted underneath investors three separate times now - when the company slashed its reported shareholder equity by $1.2 billion to unwind its transactions with one of those partnerships, when it restated nearly five years' worth of earnings downward by a total of $586 million, and when it revealed that it could take further charges and was facing an imminent deadline to post collateral on a $690 million note. (That deadline has now been extended until Dec. 14.) When you've gotten punched in the face three times, it's not unreasonable to fear there'll be a fourth blow, no matter how much the puncher assures you there won't be. Given Enron's insanely complicated structure, and the way bad financial news has dribbled out of the company over the past several weeks, who can guarantee there aren't more such shocks yet to come? That's what investors appear to be fearing, and that may be part of the reason Enron stock has fallen so precipitously. Thanks to Enron's repeated demonstrations that its numbers can't be relied on, investors no longer have a firm, trustworthy basis on which to value the stock. And so, not surprisingly, the value is getting ratcheted down to the most conservative, bare-minimum level. An Enron spokesman couldn't be reached for comment. It's ironic, in a way. For a long time, it was hard to properly value Enron because its structure and finances were so complex and hard to decipher. Now it's hard to properly value Enron because the company's attempts to clarify its finances have made it clear that it's hard to expect investors to trust in their accuracy. -By Michael Rapoport, Dow Jones Newswires; 201-938-5976; [email protected] Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Dynegy Board Silent On Status Of Enron Takeover >ENE DYN By Christina Cheddar Of DOW JONES NEWSWIRES 11/26/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- As the market continues to speculate about the status of Dynegy Inc.'s (DYN) takeover of Enron Corp. (ENE), Dynegy's board isn't offering its opinion. "Any comments coming out of Dynegy are coming from the company's executives," said Jerry Johnson, a Dynegy board member who also is an executive vice president at Safeguard Scientifics Inc. (SFE). Johnson declined to comment on any matters related the pending acquisition of its larger rival, and wouldn't say whether the board has been meeting to discuss the transaction. Three other board members, through their representatives, declined to comment as well. Other non-executive directors on the 14-member board either weren't immediately available to comment or couldn't be reached. As for Dynegy's management, spokesman John Sousa said the company's opinion on the deal remains the same since its last comments on Wednesday. At that time, Dynegy Chairman and Chief Executive Chuck Watson said Dynegy was continuing its due diligence and was looking to accelerate regulatory approval of the deal. According to Sousa, Dynegy worked through the holiday weekend gathering information as part of its due diligence efforts. Meanwhile, Enron continued its discussions to raise between $500 million to $1 billion of additional financing, said Enron spokeswoman Karen Denne. The company also is working to restructure its debt by mid-December, she said. But investors appear to be voting with their feet. Enron shares were recently down 18.3%, or 86 cents, to $3.85, while Dynegy shares slipped 2.7%, or $1.06, to $39.34. As a result, the already huge discount to the deal's offer price has grown even bigger as the market continues to signal the deal won't get completed on its original terms. Under the terms of the transaction, Enron shareholders are to receive 0.2685 of a Dynegy share for each share outstanding, or about $8.98 billion, based on Dynegy's recent stock price. At Enron's recent level, the stock is trading at a 64% discount to the Dynegy offer. Neither Sousa or Denne would comment on the stock movement. Dynegy has already provided Enron with a $1.5 billion cash infusion that is secured by Enron's pipeline assets. While that investment has helped Enron's near-term liquidity position, it remains unclear how long the company can remain solvent without any added investments. -By Christina Cheddar, Dow Jones Newswires; 201-938-5166; [email protected] Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron, Banks Formalize $690M Debt Extension To Dec. 14 By Carol S. Remond and Christina Cheddar 11/26/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) Of Dow Jones Newswires NEW YORK -(Dow Jones)- Enron Corp. (ENE) and a group of banks last week formalized an agreement to extend the due date on a $690 million syndicated loan by three weeks to Dec. 14. The loan relates to one of Enron's consolidated limited partnerships that owns minority interests in power and energy projects around the world. Enron said last week that Standard & Poor's downgrade of its credit rating to "BBB-" had triggered an obligation to repay the loan by Nov. 27. People familiar with the matter said last week that lead banks J.P. Morgan Chase & Co. and Citigroup Inc. and Enron will use the extension to negotiate a further postponement of the debt to the middle of 2002 when other Enron bank loans come due. About $1.75 billion of Enron's $3.5 billion in syndicated bank loans come due in May 2002 and will likely need to be restructured. About $250 million of the assets securing the $690 million loan are in the process of being sold and will be used to pay down the loan, reducing the outstanding portion of the loan that will need to be restructured, those people familiar with the matter said. Enron's shares and bonds continue to suffer from mounting uncertainties about the company's finances and whether those could force one-time rival Dynegy Inc. (DYN) to reconsider its offer to buy Enron, an offer that many see as Enron's only chance to avoid bankruptcy. Enron stock was recently down 18% to $3.84. Meanwhile, Enron bonds are also lower, with the 6.4% bonds due 2004 recently trading at a distressed level of 48 cents on the dollar. Carol S. Remond; 201-938-2074; Dow Jones Newswires; [email protected] and Christina Cheddar; Dow Jones Newswires; 201-938-5166 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Citigroup Has $2.38B Less To Lose On Enron Due To Swaps By Christine Richard Of DOW JONES NEWSWIRES 11/26/2001 Dow Jones Capital Markets Report (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Citigroup Inc. (C) is expected to extend a hand to Enron Corp. (ENE) by renegotiating a $690 million payment due Nov. 27. But investors shouldn't be concerned that the financial services giant is too exposed to the embattled energy trading company. Citigroup already may have laid off the loan and other exposure via a series of credit default swap transactions. That means more institutional investors left holding the bag if Enron isn't ultimately rescued from financial collapse by a takeover proposed by Dynegy Inc. (DYN). Over the last few years, Citigroup has entered into at least six transactions that effectively would allow the bank to lay off the equivalent of $2.384 billion in Enron exposure. Citigroup was instrumental in setting up Enron Credit Linked Notes Trust, Enron Credit Linked Notes Trust II and Yosemite Securities Trust I, which together raised $1.750 billion; Enron Sterling Credit Linked Notes Trust and Yosemite Securities Co., which raised a combined GBP325 million; and Enron Euro Credit Linked Notes Trust, which issued EUR200 million. Citigroup, which acts as the default swap counterparty to the trusts, receives the return on the portfolio of single-A-plus-or-better-rated securities, purchased with the proceeds of the offerings, in exchange for providing the payout on the Enron exposure, according to Mary Ryan, director of synthetic securities ratings at Standard & Poor's. As long as Enron remains out of bankruptcy, Citigroup continues to make payments on the notes, Ryan said. If Enron defaults, Citigroup would cease making payments to the trust. The single-A-plus-or-higher-rated securities in the trusts would go to Citigroup in exchange for the same nominal amount of now in-default Enron debt obligations. And with speculation mounting that Dynegy will reduce, or maybe even scrap, its offer to buy Enron, the chances of a such a default-driven transfer would appear to be rising. These notes essentially are synthetic Enron debts, meaning they act like Enron bonds in many respects, but lack key components that make holders true creditors of Enron. For instance, the holders of these notes, because they don't possess actual Enron obligations - and won't unless the company defaults - are not involved in negotiations to restructure or rollover debt. It has been reported that Enron is engaged in active negotiations over the terms of its debts with creditors. The synthetic notes all carry a rating equivalent to Enron's rating of triple-B-minus from Standard & Poor's and Baa3 from Moody's Investors Service. The rating on the securities has been downgraded in recent weeks to reflect the downgrades in Enron's ratings. Citigroup officials did not respond to requests for further details on the transactions. -By Christine Richard, Dow Jones Newswires; 201-938-2189; [email protected] Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Is Sued Over 401(k) Plan; Plaintiffs Seek $850M 11/26/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Enron Corp. (ENE) was sued Monday in the latest of at least three purported employee class action suits the company faces over lost 401(k) retirement savings due to the recent collapse of the price of Enron stock. In a press release Monday, Eli Gottesdiener, a Washington, D.C. attorney who filed the latest suit on behalf of employees, said it seeks $850 million in plan losses, in part because the company sold Enron stock to its employees knowing the price was artificially inflated. An Enron spokeswoman declined to comment. Unlike two similar, recently filed suits against Enron, the latest also contends that Enron offered the stock without the required prospectus. If proven, the sale without a prospectus "give workers the automatic right to rescind their purchases and receive their money back with interest," Gottesdiener said in a statement. Enron "locked down" the retirement plan from Oct. 17 to Nov. 19, to make administrative changes, which prevented employees from selling Enron shares as the share price collapsed amid growing disclosures of financial problems. Earlier this month, Houston-based Dynegy Inc. (DYN) offered to buy its far larger competitor in an all-stock deal that values Enron shares at $10.85 a piece, or about $9.2 billion. Enron later disclosed that its future earnings would be substantially less than expected and shares fell sharply. Enron currently trades at $4.05 a share, down from their 52-week high of $84.88 a share in December 2000. The first suit was filed Nov. 13 on behalf of plaintiffs by Campbell Harrison & Wright LLP in Houston. A second was filed last week by Seattle-based Hagens Berman LLP. -John Seward; Dow Jones Newswires; 201-938-5400 (Corrected 04:34 PM) Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. STOCKWATCH Enron falls 14 pct on mounting concerns over Dynegy deal 11/26/2001 AFX News (c) 2001 by AFP-Extel News Ltd NEW YORK (AFX) - Shares of Enron Corp were down 14 pct in midsession trading as concerns continued to mount over the energy giant's acquisition by Dynegy Inc, with investors focusing more and more on the deal's breaking clause, dealers said. At 12.45 pm, Enron shares were trading down 65 cents at 4.06 usd, a decline of 14.0 pct. Dynegy was down 1.60 usd at 38.80, amid broad declines in energy shares as crude prices sank. The DJIA was up 57.70 points at 9,892.86. The S&P 500 was up 6.24 points at 1,143.27. The Nasdaq composite was up 11.94 points at 1,886.99. Dealers said that with Enron shares having slid well below the Dynegy offer price of 9.85 usd a share, the ChevronTexaco affiliate may well reconsider its offer, or walk away from the deal all together. "People are making the bet that perhaps Dynegy may cancel the deal, and that's there a lot more risk in playing the arbitrage," said Jefferies & Co market strategist Art Hogan. The deal with Dynegy contains a "material adverse change" clause, which could be invoked to call the deal off, he said. As part of its due diligence, Dynegy is examining details of Enron's filing with the Securities and Exchange Commission last week, which reportedly contained information it had not received previously. Enron shares have plunged further since the filing, in which Enron revealed a number of new financial problems including a possible obligation to repay a 690 mln usd note due Nov 27. Enron subsequently received an extension on the repayment until mid-December. Since the beginning of the year, Enron shares have lost over 90 pct of their value after it was revealed that the company would post hefty third-quarter charges linked to risky investments by the firm's former chief financial officer. "At this point, with so much smoke around the fire, I think the shares are rightly valued," said Jefferies' Hogan. ng/gc Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: UPDATE 1-Enron shares slide lower as merger doubts intensify. By Janet McGurty 11/26/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 26 (Reuters) - Shares of troubled energy giant Enron Corp. continued to lose ground on Monday amid fears that the proposed acquisition of the company by smaller rival Dynegy Inc. will fall through. Enron stock was down 61 cents, or 12.9 percent, at $4.13 in active midmorning trade on the New York Stock Exchange. Dynegy has agreed to pay $10.55 per share for Enron. "The market is acting like the deal is not going through or not going through at the original terms," said Michael Heim, an industry analyst at A.G. Edwards & Sons. Heim said that among three possible scenarios - the deal goes through as planned, it is canceled, or it is restructured - the first is the least likely. "Escape clauses" built into the Dynegy-Enron deal give the buyer the option to back out if there is serious deterioration in Enron's business or assets. "Dynegy has a good claim that the 'material adverse condition' clause has already been triggered, either by the $690 million loan being accelerated, earnings (being) down or the ongoing trading business weakness," he said. Last week Enron said it could be forced to pay a $690 million debt this week because of a credit downgrade, but the payment deadline has been delayed until mid-December. Enron's recent admission that lower volumes at its trading business - the crown jewel that Dynegy most covets - could cause low fourth-quarter earnings raises the possibility that the trading business is losing its profitability. Continued lower volumes there would remove a key attraction for Dynegy. "Every day that goes by where Enron trading volumes become less, it decreases the value of the assets Dynegy was trying to buy in the first place," Heim said. "Besides trading and marketing, what value does Enron have?" The majority of Enron's physical assets are spoken for, with partnerships and creditors getting first dibs and Dynegy getting the first right to exercise its option to acquire Enron's Northern Natural Gas pipeline. Dynegy, which is 26.5 percent-owned by energy giant ChevronTexaco , is to swap 0.2685 share of its own stock for each share of Enron. Shares of Dynegy were down $1.27, or 3.1 percent, at $39.13 in midmorning NYSE trade. Enron agreed to a Dynegy buyout after it was overwhelmed by a series of problems, including a U.S. regulatory probe of off-balance-sheet dealings by its officers, a $1.2 billion cut in shareholder equity, and cuts in its credit ratings. Enron subsequently restated its earnings, but investor unease snowballed and its share began tumbling. The shares were above $90 in August 2000. Heim said he was not sure that EnronOnline, Enron's online trading platform, is the premier property it once was. "Two years ago it had some value, but now others have been able to duplicate it. It's not the computer systems - it's the traders and network that Enron had. If those go away, the value lessens. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: Enron lawsuit seen as wake-up call for pensions. 11/26/2001 Reuters English News Service (C) Reuters Limited 2001. HOUSTON, Nov 26 (Reuters) - A Washington, D.C., lawyer said Monday he hopes heavy losses suffered by Enron Corp. employees will spur Congress to limit employee investments in their employers' stock through 401 (k) retirement plans. "How many workers have to lose both their jobs and their retirement savings before Congress steps in and puts a stop to this by placing a cap on the amount of company stock that can be in a 401 (k) plan?" lawyer Eli Gottesdiener asked. Gottesdiener released a statement Monday saying he had filed a lawsuit on behalf of employees of the beleaguered energy giant who have lost an estimated $850 million on Enron stock held in their 401 (k) retirement accounts. The suit is the third one filed against Enron that alleges the company breached its fiduciary duty to employees by encouraging them to invest in its stock at artificially inflated prices. All three suits seek class-action status. Enron's shares have fallen from a high of $90 in August 2000 to less than $5 today, their decline accelerating since Oct 16 amid a series of disclosures about its deteriorating finances. Like many other companies, Enron makes matching contributions to its employees' 401 (k) retirement accounts in its own stock. It also requires them to hold the stock they receive in matching contributions until they turn 50. Enron employees were also prevented from selling Enron stock held in retirement accounts for several weeks from mid-October due to a change in the retirement plan's administrator. Gottesdiener said investment advisors recommend investing no more than 15 percent of a portfolio in a single stock, but that participants in 401 (k) plans offering employer stock as a choice typically hold 33 percent of their portfolio in that stock. "Congress sensibly placed a 10 percent limit on company stock in traditional defined benefit plans back in 1974, but at the behest of the corporate lobby, it placed no such cap on defined contribution plans," he said. The absence of such a cap in defined-contribution 401 (k) plans was "completely indefensible," he said. Gottesdiener's suit alleges that Enron violated federal securities law by offering and selling Enron stock to employees without issuing a prospectus. If proven, this would give workers the right to reverse their purchases, he said. Gottesdiener is also involved in class action pensions litigation against New York Life Insurance Co. and SBC Communications Inc.. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: US Corp Bonds-Bonds tighten, analysts fret on Enron. 11/26/2001 Reuters English News Service (C) Reuters Limited 2001. By Jonathan Stempel NEW YORK, Nov 26 (Reuters) - U.S. corporate bonds outperformed Treasuries on Monday as traders edged back to their desks following the Thanksgiving Day weekend, in the midst of a broad revival for corporate bonds of all stripes. In secondary trading, spreads, the yield difference between the bonds and comparable maturity U.S. Treasuries, tightened about 0.01 percentage point. "I would expect a continuation of the tightening, especially with Treasury interest rates going up," said one trader. "Absolute corporate yields are starting to look pretty attractive." Corporate bonds, especially junk bonds, have outperformed Treasuries this month as investors developed a new tolerance for risk. Though absolute returns for investment-grade corporate bonds are negative, they are even worse in the Treasury market, where investors appear more convinced that the current U.S. economic downturn won't be deep or long. "The successes in Afghanistan and some milder-than-anticipated economic data have combined to increase investor appetite for risk," wrote fixed-income research service CreditSights Inc. in a report dated Monday. "While the severity and swiftness of the bond market's correction was a surprise, it hasn't changed our basic view of U.S. corporate bonds and we continue to recommend overweight positions." This week's forward calendar remains quiet. In early trading, 10-year Treasuries rose 10/32, as their yields fell to 4.971 percent. ENRON Market participants are closely watching Houston-based Enron Corp. as the largest U.S. energy trader tries to merge with smaller cross-town rival Dynegy Inc. , keep its investment-grade credit ratings, and manage a load of $9.15 billion of debt and other obligations, much of which is unsecured and coming due within 13 months. Of this debt amount, $690 million could come due by mid-December, and $3.9 billion immediately if Enron falls to junk status. The key to resolution of this matter, some observers believe, is Enron's banks. "The goal of the banks now is to re-cut their exposure to gain as much structural seniority or asset liens as possible, take out fees, raise rates, take down total exposure, and generally improve their risk-profile under multiple scenarios," said CreditSights. "The very bankers who are supplying liquidity through new secured bank lines and who are rumored to be considering equity investments are the ones on the hook (and unsecured) for $3 billion in bank loans," wrote Carol Levenson, an analyst for GimmeCredit, another fixed-income research service. "If Dynegy backs out (in the interest of self-preservation), these vital bank renegotiations might save Enron but leave unsecured bondholders as the patsies." Enron's existing 6.4 percent notes maturing in 2006 and 6.75 percent notes maturing in 2009 were bid on Friday at 57 cents on the dollar, down from around par on October 12, before Enron first reported third quarter results, which it later revised downward. Enron shares have fallen 94 percent this year to their lowest level since early 1989. DATA Investment-grade and junk bond spreads narrowed 0.1 and 0.27 percentage point last week, respectively, to 1.68 and 7.84 percentage points, according to Merrill Lynch & Co. Junk bond spreads have narrowed 1.45 percentage points this month. For the month, junk bonds have returned 2.996 percent, while investment-grade corporate bonds have lost 2.355 percent and Treasuries 3.488 percent, Merrill Lynch said. For the year, the respective bonds are up 4.777, 9.634 and 6.565 percent. For a complete list of upcoming or recently priced bond deals, please click on . Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Petrobras, Petros, close to buying Enron's stakes in CEG/CEG Rio - report 11/26/2001 AFX News (c) 2001 by AFP-Extel News Ltd SAO PAULO (AFX) - Petroleo Brasileiro SA and its pension fund Petros are close to winning regulatory approval to purchase Enron Corp's stakes in gas distributors CEG and CEG Rio, daily Valor Economico reported. Valor said Petrobras last week reached an agreement with the Regulatory Agency for Public Service Concessions of Rio de Janeiro local authorities, under which it agreed to undertake a series of investments in exchange for approval to acquire Enron's 13.38 pct stake in CEG and its 33.75 pct stake in CEG Rio. It said the deal now passes to Rio de Janeiro governor Anthony Garotinho for approval. as For more information and to contact AFX: www.afxnews.com and www.afxpress.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. TALES OF THE TAPE: Energy Traders' Perfect Storm Stalls By Christina Cheddar 11/26/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) Of DOW JONES NEWSWIRES (This story was published originally Friday) NEW YORK -(Dow Jones)- Here's one 2001 outlook that couldn't have been more wrong. Around this time last year, pundits and fund managers were touting "the perfect storm" of market forces that were coming together to make the energy trading business one to watch in 2001. Then came the California power crisis, and allegations of price-gouging and fears of credit defaults began to cloud the outlook for the group. That was followed by renewed volatility in power prices, and this time the prices were headed down, not up. And then came a crushing blow against trading firms - the unraveling of the industry's largest player, Enron Corp. (ENE). Simply put, the perfect storm stalled, and a business once buoyed by high gas prices, strong demand and tight supply now lies in tatters. The stocks of companies whom some say should be valued more like growth stocks than utilities are instead mired at around nine-times earnings - about where traditional utilities trade. And the chance for recovery in 2002? Basu Mullick, portfolio manager of the Neuberger Berman Partners fund, is willing to bet there is. He thinks energy traders deserve at least the same price-to-earnings multiple as the broader market's median, which is currently between 16- to 17-times future earnings, he said. It's just a matter of time before the stocks get there. "They were just recovering from Gray Davis," Mullick said, referring to the governor of California, who had accused "out-of-state" energy traders of artificially inflating the price of power in the state, and triggering the state's energy crisis. "Now, they are recovering from Enron." The fund manager also blames lower commodity prices, warm weather and poor demand for the recent weak performance in the group. "Energy convergence companies are putting up terrific growth rates," he said. "I don't think they should get the same valuation as a garden-variety utility." Still, others think the stock market is continuing to make distinctions between the energy traders by taking a harder look at the companies' strategies and financial disclosures. Enron's precarious financial situation underscores the importance of accounting issues. Although many of Enron's financial problems aren't solely the fault of mark-to-market accounting issues, there has been growing attention paid to this form of financial reporting because of the earnings volatility it can create. Answers Elude Investors Investors are asking hard questions, and not always getting the answers they want. Using mark-to-market methods, a company calculates the fair market value of a commodity position - whether it's a contract, an option, a swap, etc. - at the time, even if the value of the position is realized over a longer period. The problem with this method is the actual cash a company realizes from the position might not be the same value the company calculated in its original assessment. Also, sometimes it isn't easy to calculate the fair value of the commodity position. This is particularly true in instances where the market for the commodity isn't liquid. Over time, companies with the highest level of disclosure regarding their mark-to-market gains will most likely trade at higher multiples to counterparts that provide little or no disclosure, said ABN AMRO Inc. analyst Paul Patterson. Encouragingly, it appears companies may already be responding to the call for added disclosure. According to a survey Patterson conducted, more companies with energy trading units were willing to disclose the details of their mark-to-market accounting practices during third-quarter conference calls compared with those in the second quarter. Patterson said he prefers earnings that are cash-based. "All things being equal, we believe reported earnings that more closely reflect the timely realization of cash have a higher quality associated with them than earnings that do not," he said. He expects investors to become smarter and learn to distinguish between earnings growth through accrual accounting and growth fueled by mark-to-market accounting. At the end of the day, it is not a matter of simply producing profits, but being able to say where those earnings came from, said one investor, who manages a pension fund. Some investors also may be placing a greater emphasis on the cash flow the energy merchants produce. Tim O'Brien, portfolio manager of the Gabelli Utilities Fund, said energy merchants that own the physical power assets to back up their trading positions should trade at a premium to an independent power producers and traditional utility companies. Still, the stocks should be valued at less than the growth rate of the company because of their heavy exposures to commodity prices. Energy merchants include companies such as Dynegy Inc. (DYN), Duke Energy Corp. (DUK) and Dominion Resources Inc. (D). According to O'Brien, the group never deserved to have the price-to-earnings multiples above 20- to 30-times earnings, which were once paid for the stocks. "We all got sucked up by the up-leg of the cycle and forgot just how cyclical these companies are," O'Brien said, adding that the average multiple should be in the high single-digits to the high-teens. As for independent power producers - which are companies without regulated operations that own power plants to generate electricity to sell and trade in the wholesale market - the group may wind up being valued on the basis of the replacement costs of the assets in their portfolio, according to O'Brien. "One analogy is that they are basically like commercial real-estate plays," O'Brien said. That could mean stocks such as Calpine Corp. (CPN), which is already in the lower-half of its trading range, may have further to fall. -By Christina Cheddar, Dow Jones Newswires; 201-938-5166; [email protected] Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA: UPDATE 1-India's AV Birla group denies bid for Enron unit. 11/26/2001 Reuters English News Service (C) Reuters Limited 2001. (Recasts with denial, comments from financial institution in paragraphs 5-6) BOMBAY, Nov 26 (Reuters) - The Aditya Vikram Birla Group, a leading Indian conglomerate, on Monday denied newspaper reports it was looking to buy U.S. energy giant Enron Corp's 65-percent stake in the beleaguered Dabhol Power Company. "There has been no expression of interest in Dabhol. We are not interested," a top AV Birla group official told Reuters. Two leading Indian business dailies earlier said the group, whose interests range from textiles to cement and carbon black, is eyeing Dabhol to expand its interests in the domestic power sector. The Economic Times and the Financial Express said the group was exploring the possibility of submitting an expression of interest to Indian financial institutions to buy Enron's stake in the company. An official of state-run Industrial Development Bank of India, the leading financier of the $2.9 billion project in the western state of Maharashtra, said he has not heard from the Birla group. "We have not received any official communication from them," the official, who did not wish to be identified, told Reuters. The spokesman for Dabhol was not available for comment. FIGHTING FOR SURVIVAL Enron Corp, which is fighting for survival in the United States amidst investor doubts over its corporate governance practices, owns 65 percent of Dabhol. General Electric Co and Bechtel own 10 percent each, while the Maharashtra State Electricity Board (MSEB) owns 15 percent. Dabhol and MSEB have been fighting over payment defaults and high tariffs for over a year. The dispute has affected India's efforts to attract foreign investment in the power sector and caused Enron and its U.S. partners to announce plans to exit the project. Tata Power Company Ltd, India's largest private sector utility firm, and BSES Ltd, another utility company and a member of India's largest conglomerate, the Reliance Group, are already in talks to buy Enron's stake. The AV Birla Group has adopted the route of mergers and acquisitions in recent years to consolidate its position in key industries. Last week, one of its group companies, Grasim Industries Ltd, bought a 10-percent stake in India's largest cement maker, Larsen & Toubro Ltd Earlier this year, Indian Rayon & Industries Ltd, another group company, entered the information technology sector by buying out France's Groupe Bull SA's 50.35 percent stake in PSI Data Systems But the group's track record in the power sector has been less than impressive. Two joint ventures with Britain's Powergen Plc to produce over 1,000 megawatts of electricity in two Indian states have not made much headway since they were announced in the mid-1990s. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron's Stock, Bonds Drop on Concern for Dynegy Bid (Update8) 2001-11-26 16:45 (New York) Enron's Stock, Bonds Drop on Concern for Dynegy Bid (Update8) (Adds analyst comment in 4th paragraph.) New York, Nov. 26 (Bloomberg) -- Enron Corp.'s stock price declined to a 14-year low and its bonds plunged 10 points on concern the company won't secure $1 billion in fresh capital, threatening its plan to be acquired by Dynegy Inc. ``The clock is definitely ticking,'' said Jon Kyle Cartwright, a debt analyst at Raymond James and Associates. ``The question is the survivability of Enron.'' J.P. Morgan Chase & Co. and Citigroup Inc. executives met today to line up investors for as much as $2 billion of bonds convertible into stock. The company needs the money to operate until Dynegy completes its $23 billion purchase. Dynegy unveiled its plan to make the acquisition on Nov. 9. Enron shares and bonds, which opened lower, tumbled after 1 p.m. when no announcement for fresh financing was made. Enron's 6.4 percent notes that mature in 2006 plunged to 48 cents on the dollar, down from 55 cents on Friday. The bonds now yield 26 percent. Enron shares declined 15 percent, or 70 cents, to $4.01. Concern that rival Dynegy may change or cancel its bid for Enron has pushed Enron's stock down 55 percent in the past week. Enron's shares had plummeted 86 percent since mid-October after the company reported a $618 million third-quarter loss and said expansion into water, telecommunications and retail-energy sales cost it $1.01 billion. ``You haven't heard anything from Dynegy today, and that is a bit scary,'' said Andy Palmer, who doesn't hold Enron bonds in the $2 billion he helps manage at ASB Capital Management Inc. in Washington. Part of the third-quarter charge was connected with limited partnerships run by the chief financial officer. He was ousted, and the U.S. Securities and Exchange Commission started an investigation into Enron's accounting. The company earlier this month restated its earnings for the past four years. Talks on $1 Billion Under the buyout, Enron investors would receive 0.2685 Dynegy share for each share held. That valued Enron at $10.41 a share, 21 percent more than Enron's share price that day. On Friday, the buyout valued Enron at $10.85 a share, more than double Enron's closing price of $4.71. The widening of the difference between the value of the offer and Enron's stock price indicates investors doubt the buyout will go through. Shares of Enron traded as low as $3.76 today, rebounding to close at $4.01. The stock was the most active in U.S. trading Wednesday and Friday. Dynegy dropped $1.15, or 2.85 percent, to $39.25. The stock has fallen 30 percent this year. Both companies are based in Houston. Egan-Jones Ratings Co. lowered its rating on Enron's credit today to ``BB-'' from ``BB.'' ``Dynegy needs to show its support, or Enron will slide,'' the firm said in a report. Moody's Investors Service hasn't issued a report on Enron since the company filed its 10-Q quarterly report with the SEC a week ago. The ratings agency's analysts haven't returned calls for comment. Moody's cut Enron's long-term credit rating on Nov. 9, though it maintained an investment grade. `More Problems' ``Time is not Enron's friend,'' said Stewart Morel, co-head of investment grade debt research at UBS Warburg LLC. ``There is increased concern in the market that there may be more problems that are yet to be disclosed.'' On Wednesday, Enron got a three-week reprieve from lenders on a $690 million note due this week, giving the company more time to restructure its finances. Dynegy Chief Executive Officer Chuck Watson said he was ``encouraged'' by the commitment to extend the note payment, as well as the closing of a $450 million credit facility, and that Dynegy remained committed to the merger. Terms of the $690 million note were outlined for the first time in the Enron filing a week ago. Enron also said that it has less than $2 billion in cash and credit lines left. If the company's cash reserves run too low, Enron's credit rating may be cut below investment grade. That would trigger $3.9 billion in debt repayments for two affiliated partnerships. Enron said in the filing that fourth-quarter profit might be hurt by a drop in its trading business. Companies such as Aquila Inc. and Mirant Corp. have reduced their activity with Enron because of credit concerns. ``Should the Dynegy deal fall through, we don't view it likely that Enron would be able to remain as a stand-alone company,'' Youngberg of Edward Jones said. ``Without Dynegy, the credit rating will fall, causing their trading business to dry up further.'' Enron, the biggest energy trader, once handled about a quarter of U.S. gas and power transactions. Enron's bankers met with leveraged buyout firms and two industrial companies to seek an investment, the New York Times reported last week. J.P. Morgan Chase & Co. and Citigroup Inc. agreed to terms that give each of them a $250 million equity stake as part of a transaction to be completed today. Dynegy Bonds Slip as Enron Purchase May Harm Credit Rating 2001-11-26 15:16 (New York) Dynegy Bonds Slip as Enron Purchase May Harm Credit Rating New York, Nov. 26 (Bloomberg) -- Dynegy Inc. bonds have fallen as much as 9 percent this month on investor concern the energy trader's proposed $23 billion purchase of rival Enron Corp. will erode its credit rating. Dynegy's 6.88 percent coupon notes due in 2011 are trading at $932 per $1,000 face value, down from $1,024 last month, according to Merrill Lynch & Co. data. Yield on the debt has risen to 7.9 percent from 6.5 percent as investors demand more return to compensate for the increased risks of the securities. Dynegy's credit is rated ``Baa3'' at Moody's Investors Service, the lowest rung of investment grade, and ``BBB+'' at Standard & Poor's, two levels higher. Each ratings company said it may cut Dynegy's credit rating if it buys Enron, which comes with about $15 billion in debt and a regulatory inquiry into financial partnerships set up to keep debt off its books. ``If you put Dynegy and Enron together it will have a detrimental effect on Dynegy's credit rating,'' said Tim Nelson, senior credit analyst at U.S. Bancorp Piper Jaffray Cos. in Minneapolis, which holds Dynegy bonds. Dynegy's 7.45 percent coupon notes due in 2006 are trading at $1,019 per $1,000 face value, down from $1,085 last month, according to Merrill. The notes yield almost 7 percent, up from 5.4 percent. Enron's credit is rated ``Baa3'' at Moody's and ``BBB-'' at S&P, the lowest level of investment grade. Both ratings companies are reviewing the credit for a possible downgrade and say Dynegy's buyout plan is what's keeping the grades above junk. ``I don't think right now anybody knows exactly what Enron is,'' said Mark Simenstad, who holds Dynegy bonds in the $5 billion he helps manage at Lutheran Brotherhood. ``Dynegy has proven to be pretty well-managed over the years so you have to give them the benefit of the doubt here,'' Simenstad said. ``The hope is that if there's something they don't understand they'll walk away.'' Dynegy has $3.9 billion of bonds outstanding, most of which come due between 2002 and 2011, according to Bloomberg data. Shares of Houston-based Dynegy, which topped $47 two weeks ago after Chief Executive Chuck Watson said the Enron purchase would boost earnings by at least 35 percent next year, fell $1.30 to $39.10 in mid-afternoon trading today. Enron's shares, down 92 percent this year, fell as much as 80 cents, or 17 percent, to $3.91, a the lowest since 1987. ENRON SHARES SLIDES TO ALL-TIME LOW By CBS.MarketWatch.com 4:53 PM ET Nov 26, 2001 HOUSTON (CBS.MW) -- Enron shares fell as much as 20 percent Monday, crashing through the $4 level for part to set an all-time low and cast additional doubt on the energy merchant's plan to be acquired by rival Dynegy. Enron (ENE) set a new all-time low of $3.76 Monday afternoon before closing at $4.01, off 70 cents. More than 60 million shares changed hands, making it the most active issue on the New York Stock Exchange. The stock has lost about half its value since Dynegy announced an agreement to buy Enron on Nov. 9 and more than 85 percent of its value in the past month. Meanwhile, shares of Dynegy (DYN) lost $1.15, or 2.8 percent, to stand at $39.25. The collapse in Enron's share price has made it more likely that Dynegy and Enron will have to renegotiate the terms of their original deal, in which 0.2685 of a Dynegy share would be exchanged for each outstanding Enron share. However, the Financial Times reported that Dynegy remains confident of its ability to complete a deal for Enron, which has been seeking $500 million in private equity capital to shore up its finances. "We continue to hear reports the Enron's energy marketing and trading business, once the crown jewel of the company, has eroded badly with counterparties only willing to do shorter-term deals," A.G. Edwards & Sons analysts Charles Fishman and Douglas Fischer wrote in a research note Friday. Enron investors do not believe that the merger is likely to occur under the current terms, the analysts said. Chance of Dynegy backing out _______________________________________________________________________ On Monday, Michael Heim, also of A.G. Edwards, attributed Enron's latest stock drop to "growing belief that the likelihood of the (merger) deal is not so likely." He pointed out that the outlook for Enron is "not very favorable" but in the meantime, it's doing everything it can to stay "afloat" while working on closing the deal. Last week, Enron said it got a bank extension on a $690 million note to mid-December. The note was originally set to come due in 2003, but was bumped up to Nov. 26 due to a rating downgrade at Standard & Poor's. <http://cbs.marketwatch.com/news/story.asp?guid=%7B81418CA4%2D11A5%2D4C7C%2DA602%2DCF3DA4BCAA7B%7D> The payment by itself is manageable because Enron has about $2 billion in cash on its hands, Heim said, but "the event moves Enron's merger one step closer to the point in which Dynegy is able to exercise the merger's material adverse condition clauses and back out of, or restructure, the merger deal." Heim has a "sell" rating on the stock.	[email protected]
arnold-j/deleted_items/749.	subject: Enron Mentions - 11/23/01 content: Premiums Stay High on Enron's Near Options, And `Doubling Up' Date Looms fo= r Tax Losses The Wall Street Journal, 11/23/01 Dynegy Deal To Buy Enron Hits Crossroads The Wall Street Journal, 11/23/01 Enron Faces Suits by 401(k) Plan Participants The Wall Street Journal, 11/23/01 From Sunbeam to Enron, Andersen's Reputation Suffers The New York Times, 11/23/01 Chase and J. P. Morgan's Paper Anniversary A Year After the Merger, Rosy Plans Meet Reality The New York Times, 11/23/01 COMPANIES & FINANCE THE AMERICAS - Enron 'awaiting' capital injections, say= officials. Financial Times, 11/23/01 USA: UPDATE 2-Enron bleeds again as Dynegy deal doubts grow. Reuters English News Service, 11/23/01 USA: Enron avoids junk status, but observers wonder how. Reuters English News Service, 11/23/01 USA: US Corp Bonds-Enron slips again in quiet market. Reuters English News Service, 11/23/01 USA: Enron shares seesaw on concerns over Dynegy deal. Reuters English News Service, 11/23/01 TALES OF THE TAPE: Energy Traders' Perfect Storm Stalls Dow Jones News Service, 11/23/01 U.S. Energy Exhange May Scrap Online Platform Plans Dow Jones Energy Service, 11/23/01 Enron Woes May Endanger Plans For Mozambique Steel Proj Dow Jones International News, 11/23/01 STOCKWATCH Enron down, Dynegy up on lingering merger uncertainty AFX News, 11/23/01 USA: Houston economy seen weathering major layoffs. Reuters English News Service, 11/23/01 Dabhol Pwr Confirms Arbitrator Panel Mtg In Singapore Sat Dow Jones International News, 11/23/01 Enron SEC filing contained information Dynegy was unaware of - report AFX News, 11/23/01 Dynegy's Decision to Buy Enron Hits Crossroads Amid Rising Financial Woes Dow Jones Business News, 11/23/01 Employees' Lawuit Says Enron Hurt Retirement Funds Courts: The suit claims = the energy firm urged workers to invest in company stock just before it plu= nged. Los Angeles Times, 11/23/01 Portland utility's fate tied to Enron's future The Seattle Times, 11/23/01 Enron Shares and Bonds Fall on Concern About Takeover (Update5) Bloomberg, 11/23/01 KKR, Blackstone Are Among Likely Enron Investors, Analyst Says Bloomberg, 11/23/01 Microsoft MSN Fast Web Access Expansion Slowed by Enron Suit Bloomberg, 11/23/01 Options Report Premiums Stay High on Enron's Near Options, And `Doubling Up' Date Looms fo= r Tax Losses By Kopin Tan Dow Jones Newswires 11/23/2001 The Wall Street Journal C11 (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -- Volatility and premiums on Enron's near-month options remain ex= tremely high. It is a sign that investors are willing to pay a rich price f= or option protection and expect the stock to be unsettled as the Houston co= mpany sorts through its credit and debt problems and seeks to calm frazzled= investors.=20 Enron near-month defensive puts traded heavily in an otherwise quiet sessio= n Wednesday, as investors bought them to hedge. The December 5 puts traded = more than 10,000 contracts and jumped 45 cents to $1.10 at the Chicago Boar= d Options Exchange. The stock closed down $1.98, or 28%, to $5.01, as of 4 = p.m. in New York Stock Exchange composite trading. Enron's calls traded actively as some investors sold them to generate incom= e. Traders noted some call buying -- especially after Enron procured a thre= e-week extension on a $690 million note -- as some hopeful investors bet on= Enron pulling through its troubles and proceeding with its merger with Dyn= egy Inc. Enron's December 5 calls traded more than 14,500 contracts, compar= ed with open interest of 710, as they fell $1.45 to $1.15 at the CBOE.=20 For investors who want to book a tax loss on beaten-down stocks, the "wash = sale" rule can be a hurdle, because it essentially prevents taxpayers from = selling stock or securities at a loss and then reacquiring "substantially i= dentical" securities within a 30-day period before or after that loss. This= poses a problem for those who want to book a loss yet own stocks whose pri= ces now make them attractive "buy" candidates.=20 In addition, the Internal Revenue Service has taken the position that the w= ash-sale rule will disallow a loss if the investor sells an in-the-money pu= t, because there is a strong likelihood that stock will be put to or acquir= ed by the investor.=20 So investors typically get around the wash-sale rule by "doubling up": buyi= ng additional stock or options, waiting at least 31 days, and then selling = the original stock to book the loss. Investors double up by buying calls, w= hich locks a price to buy stock and achieves the same effect as buying addi= tional stock. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Dynegy Deal To Buy Enron Hits Crossroads By Rebecca Smith and John R. Emshwiller Staff Reporters of The Wall Street Journal 11/23/2001 The Wall Street Journal A3 (Copyright (c) 2001, Dow Jones & Company, Inc.) Even as it reiterated its intention to purchase Enron Corp., Dynegy Inc. is= coming under increasing pressure to renegotiate or walk away from the mult= ibillion-dollar deal.=20 The pressure is stemming from the continuing slide in the price of Enron sh= ares and the mounting financial problems at the Houston energy-trading comp= any, the nation's biggest marketer of electricity and natural gas. During t= he past month, Enron has taken a $1 billion write-off of assets, revised do= wnward the earnings of the past several years and taken a $1.2 billion redu= ction in shareholder equity. The problems have been due largely to dealings Enron had with private partn= erships, run by some of its own executives, under investigation by the Secu= rities and Exchange Commission. In an SEC filing Monday, Enron disclosed hu= ndreds of millions of potential additional write-offs as well as the possib= ility that its weakening financial condition could force it to repay more t= han $2 billion in loans by the end of the year.=20 As of 4 p.m. Wednesday in New York Stock Exchange composite trading, Enron = shares fell $1.98, or 28%, to $5.01 each after having dropped 23% Tuesday. = In excess of 115 million shares traded Wednesday, more than four times the = volume of any other Big Board stock. Enron's bonds also again traded sharpl= y lower, market observers said.=20 The turmoil spilled over to Dynegy's stock, which also was among the most a= ctively traded on the New York Stock Exchange. As of 4 p.m. Wednesday, Dyne= gy shares fell $1.94 to $39.76 each.=20 On Wednesday, Dynegy issued a statement in which Chairman and Chief Executi= ve Chuck Watson said his company was working "to accelerate the regulatory = approvals required to complete the merger in accordance with the previously= announced agreement" though it continued to perform "due diligence" on Enr= on.=20 Under the merger agreement, Dynegy has opportunities to renegotiate or walk= away from the deal if Enron's financial and legal problems become severe e= nough. However, some observers said it can be difficult to invoke these so-= called material adverse change clauses. They point to a decision earlier th= is year by a Delaware Chancery Court judge who forced Tyson Foods Inc. to c= omplete a planned purchase of IBP Inc. even though Tyson, a Springdale, Ark= ., food-products company, had wanted to cancel the transaction because of a= drop in IBP's earnings and accounting problems at an IBP unit.=20 Dynegy officials didn't return calls seeking comment. To complete the deal,= two-thirds of Dynegy shareholders and a majority of Enron shareholders wou= ld have to give their approval. No dates for those votes have been set.=20 One person familiar with the merger plans said the SEC filing Monday by Enr= on contained information Dynegy hadn't known about. Dynegy representatives = planned to work through the weekend evaluating the importance of this new i= nformation as part of the company's due diligence, this person said. It cou= ldn't be determined what the new information was.=20 The merger agreement, announced Nov. 9, calls for Dynegy to exchange 0.2685= share for each of Enron's roughly 850 million fully diluted shares, giving= the purchase a value of about $9 billion at Dynegy's current stock price. = However, from a price standpoint, the deal is appearing less attractive to = Dynegy.=20 On the day of the merger announcement, Enron shares were trading at about $= 8.63 each, or about 83% of the purchase price under the exchange ratio. As = of Wednesday, Enron's market price was only about 47% of the merger-formula= price. Such a sharp deterioration is unusual following a merger announceme= nt, when the stock price of the company being acquired generally begins tra= ding relatively close to the offering price.=20 Sentiment among Wall Street analysts also is turning against the merger. In= itially, many analysts lauded the merger as a move that would rescue Enron = and provide a major boost to Houston-based Dynegy. Dynegy and Enron officia= ls have predicted that the merger, supposed to be completed late next year,= would significantly and immediately increase Dynegy's earnings.=20 Now analysts are challenging that assumption. Ron Barone, managing director= at UBS Warburg LLC, said he believes that because of Enron's financial pro= blems, a combined company would actually have lower earnings next year than= Dynegy would have by itself. Mr. Barone said he thinks a "likely scenario"= is that the merger formula will be renegotiated sharply down to about 0.15= Dynegy share for each Enron share.=20 Such a ratcheting down wouldn't be without precedent in the deal. According= to one person familiar with the merger negotiations, Dynegy reduced the ex= change formula at least once prior to the Nov. 9 announcement because of En= ron's rapidly sinking stock price, which at the beginning of this year was = above $80 a share.=20 In perhaps the most significant sign of the turning tide on Wall Street, Go= ldman Sachs analyst David Fleischer lowered his ratings on Enron and Dynegy= . A longtime Enron fan, Mr. Fleischer issued a report expressing doubts tha= t the merger would help Dynegy's earnings and whether Enron could "recover = the significant business that has been lost" in its giant energy-trading op= erations. "The Enron machine continues to sputter," Mr. Fleischer wrote.=20 Some observers say that if Dynegy walked away from the deal or tried to ren= egotiate the terms significantly, Enron might be pushed into a bankruptcy-l= aw filing. Without the Dynegy acquisition and continued support from its ba= nkers and customers, an Enron bankruptcy-court filing "is highly possible,"= said Ralph Pellecchia, a senior director at Fitch, a credit-ratings agency= . On Wednesday, Fitch maintained its credit rating on Enron at just one not= ch above noninvestment-grade, or "junk," status. But Fitch also said it bel= ieved Enron's trading partners had made "significant cash collateral calls"= in recent days that are "well in excess of previous expectations," contrib= uting to "liquidity pressures."=20 Among the advisers Enron has hired during its current crisis is the law fir= m of Weil, Gotshal & Manges, which specializes in bankruptcy and corporate-= workout situations. Asked about a possible bankruptcy filing, an Enron spok= eswoman said the company expects the Dynegy deal to go through and therefor= e doesn't expect to have to look at alternatives to the merger. Since the m= erger announcement, Enron Chairman Kenneth Lay has said his company had alt= ernatives to the Dynegy deal but he has declined to identify them. Enron sa= id it made some progress improving its financial position. The company said= it reached a final agreement with units of J.P. Morgan Chase & Co. and Cit= igroup Inc. on the remaining $450 million of a previously announced $1 bill= ion in secured credit lines. Enron said lenders had agreed to extend repaym= ent of an existing $690 million note to mid-December from next week. The sp= okeswoman said a restructuring of that obligation is expected to be complet= ed next month so that repayment wouldn't be required this year.=20 ---=20 Thaddeus Herrick and Robin Sidel contributed to this article. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron Faces Suits by 401(k) Plan Participants By Theo Francis and Ellen Schultz Staff Reporters of The Wall Street Journal 11/23/2001 The Wall Street Journal C1 (Copyright (c) 2001, Dow Jones & Company, Inc.) Enron Corp., the embattled Houston energy and trading company, has been sue= d by members of its employee-retirement plan, which has suffered losses bec= ause of Enron's plummeting stock price.=20 Two separate lawsuits, filed in federal court in Houston, allege Enron misl= ed participants in its 401(k) retirement plan about the risks of investing = in the company's shares and note that the company forced the employees to r= emain invested in its stock even as the shares fell. Amid growing disclosur= es of financial problems in recent weeks, the company "locked down" the ret= irement plan from Oct. 17 to Nov. 19 to make administrative changes, which = prevented employees from selling Enron shares as the share price collapsed. Enron, which recently agreed to be acquired by Dynegy Inc., Houston, becaus= e of mounting financial problems, has seen its stock price fall to $5.01 on= Wednesday from a peak of nearly $90 a share last year. The decline has bee= n costly to participants in Enron's retirement plan because more than 60% o= f the 401(k) assets were invested in Enron shares at the end of last year, = according to one of the suits.=20 The first suit was filed Nov. 13 on behalf of plan participants by Campbell= Harrison & Wright LLP, a Houston law firm, and the second was filed Tuesda= y by Seattle-based Hagens Berman LLP. Both seek class-action certification.= =20 Enron said its corporate policy is not to comment on pending lawsuits. A sp= okeswoman also said the company's 401(k) plan offers participants 18 invest= ment choices, one of which is company stock.=20 The company's stock has fallen amid mounting losses and disclosures that it= had extensive off-balance-sheet dealings with a web of partnerships headed= by former company officials. The Securities and Exchange Commission has la= unched a formal investigation into the company's accounting, and Enron has = said it will restate years of financial information.=20 The suits against Enron are the latest of a series of suits filed against c= ompanies over losses in the company-stock portion of their 401(k) plans. Th= e suits allege the plan trustees breached their fiduciary duties by continu= ing to offer company stock, even after they became aware of serious busines= s problems that would hurt the stock price. All the suits are pending.=20 As with most of these companies, Enron matches employee contributions to th= e 401(k) with shares of Enron stock, and also offers Enron stock as an inve= stment choice, in addition to a variety of mutual funds. About $1.3 billion= of the plan's $2.1 billion in assets was invested in Enron shares at the e= nd of 2000, according to the suit filed by Campbell Harrison.=20 Pamela Tittle, a participant in the 401(k) plan who worked in the finance d= epartment and a named plaintiff in the Enron suit filed by Campbell Harriso= n & Wright, had roughly 2,000 shares of Enron stock in her retirement accou= nt and has suffered losses of about $140,000 as a result of the stock's dec= line. The suit alleges that the trustees of the Enron 401(k) plan violated = their fiduciary duties by not informing plan participants that the company = stock was in peril.=20 The suit filed by Hagens Berman, also alleges that the company failed to wa= rn participants about risks of remaining invested in Enron stock. In additi= on, it accuses Enron of systematically misrepresenting its financial result= s since 1998 in connection with the partnerships under investigation by the= SEC.=20 Roy E. Rinard, a lineman for Enron in Oregon who is a named plaintiff in th= e suit filed by Hagens Berman, has seen the value of his retirement plan fa= ll to $70,000 from $470,000, largely as a result of the decline in Enron's = stock. "I feel like I have been betrayed," Mr. Rinard said in press release= issued by his lawyers. "I lost my savings, my plans for the future, everyt= hing."=20 Under federal pension law, companies are allowed to offer their own stock i= n retirement plans, and are allowed to force employees to hold onto the sto= ck. Enron doesn't let employees diversify out of shares they receive as mat= ching contributions to the 401(k) plan until age 50.=20 However, plan trustees are supposed to operate the plan in the best interes= ts of the participants, which includes choosing prudent investments. Genera= lly, to prove that the plan's administrators breached their fiduciary dutie= s, employees must show that the trustees knew the stock was a bad investmen= t. This presents a high hurdle, so it is not surprising that prior lawsuits= over losses in company stock in 401(k) plans have generally come in the wa= ke of allegations of accounting irregularities.=20 Lynn Sarko, one of Ms. Tittle's attorneys with Seattle's Keller Rohrback LL= P, is also co-lead counsel in a similar lawsuit against Lucent Technologies= Inc., Murray Hill, N.J. Another firm representing Ms. Tittle is Dalton Got= to Samson & Kilgard PLC, which is lead counsel in a similar suit against Ik= on Office Solutions Inc., Malvern, Pa. The two law firms are representing M= s. Tittle with Campbell Harrison & Wright.=20 The suits against Lucent and Ikon, like the suit against Enron, allege that= then-current plan trustees kept offering company stock in the plan despite= knowing of serious business problems that would hurt the stock price. Repr= esentatives for Ikon and Lucent say their companies didn't require employee= s to invest in the company stock, and educated employees about the need for= diversification.=20 The suit in which Mr. Rinard is plaintiff notes that on Oct. 17, a day afte= r Enron announced the company was taking a nonrecurring charge totaling $1.= 01 billion in the third quarter, Enron "locked down" the 401(k) plan's asse= ts, preventing participants from selling Enron shares. (A "lock-down" occur= s when a retirement plan is transferred from one administrator to another, = and generally lasts several weeks, during which time participants can't mak= e changes in their investment choices).=20 The lock-down was lifted on Nov. 19. In the interim, on Nov. 8, Enron annou= nced it would be forced to restate downward its reported financial results = from 1997 through 2000. By the time the lock-down was lifted, as a result o= f all the negative news the shares had fallen to below $9 a share from $32.= 20 on Oct. 17, when the lockup started, Hagens Berman attorney Karl Barth s= aid.=20 "They were locked into it right when Enron knew it was going to be announci= ng some really bad news," Mr. Barth said. "Mr. Rinard's looking at having n= o retirement savings now. It's a horrible thing to have to start over in yo= ur 50s." Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business/Financial Desk; Section C From Sunbeam to Enron, Andersen's Reputation Suffers By FLOYD NORRIS 11/23/2001 The New York Times Page 1, Column 2 c. 2001 New York Times Company THIS has been the worst year ever for Arthur Andersen, the accounting firm = that once deserved the title of conscience of the industry. The Securities = and Exchange Commission filed civil fraud complaints against the Andersen p= artner who audited Sunbeam and against the firm itself in the Waste Managem= ent case.=20 Now Enron has repudiated the financial statements that were certified by Ar= thur Andersen, in the process shaving more than half a billion dollars from= the company's reported profits in recent years. All of which raises the question: Has Arthur Andersen become the black shee= p of the accounting industry?=20 It is not an easy question to answer, and not everyone is willing to rush t= o judgment. ''If you want to attack Andersen for Enron, you need to know mo= re than we know,'' Arthur Levitt, the former chairman of the Securities and= Exchange Commission, said this week.=20 But if there is a thread connecting what is known about the three cases, it= is materiality. In all three cases, Andersen auditors spotted bad accounti= ng but were persuaded it was immaterial and therefore allowed it to go ahea= d.=20 Materiality is one of those flexible concepts that can get accountants into= trouble. The idea is that it doesn't much matter if a few little things we= re gotten wrong. But they can add up.=20 At Enron, however, they did not add up to that much -- a total of $93 milli= on over four years. The biggest restatement of Enron profits concerns a rel= ated party that Enron now says should have been consolidated. It is not cle= ar if Andersen had the facts needed to make that decision at the time.=20 To those who treasure the role of auditors, the humiliation of Andersen is = painful. Back in the 1950's, it was Leonard Spacek, Andersen's managing par= tner, who warned that ''the profession's existence is in peril'' because it= was not showing enough independence. His public prodding was crucial in ma= king the industry do a better job. Two decades ago, when the issue on the t= able was pension accounting, Andersen was the only major accounting firm to= break with clients and push for good rules.=20 Now Andersen's backbone is open to question. It was evidence that senior pe= ople at Andersen repeatedly gave in to pressure from Waste Management that = led the S.E.C. to bring that suit, which the firm chose to settle without a= dmitting it had done anything wrong. The partner that the S.E.C. says looke= d the other way at Sunbeam is fighting the accusations, and Andersen says h= e acted properly.=20 Lynn Turner, who was chief accountant of the S.E.C. at the time and is now = director of the Center for Quality Financial Reporting at Colorado State Un= iversity, says what is happening to Andersen now is reminiscent of what hap= pened to Coopers & Lybrand when he was a partner there and the firm had a s= eries of highly publicized blown audits.=20 ''We got bludgeoned to death in the press,'' he said. ''People did not even= want to see us at their doorsteps. It was brutal, but we deserved it. We h= ad gotten into this mentality in the firm of making business judgment calls= .'' By that he meant that the firm paid too much attention to not offending= clients and not enough to good accounting.=20 For Andersen to avoid that fate, its relatively new chief executive, Joseph= Berardino, who declined to be interviewed for this column, will need to se= t a tone inside the firm making clear that he expects auditors to show the = backbone that Mr. Spacek epitomized. And then he will have to convince the = public of that. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business/Financial Desk; Section C Chase and J. P. Morgan's Paper Anniversary A Year After the Merger, Rosy Plans Meet Reality By RIVA D. ATLAS 11/23/2001 The New York Times Page 1, Column 5 c. 2001 New York Times Company When William B. Harrison Jr. speaks of last year's $31 billion merger of J.= P. Morgan and the Chase Manhattan Corporation, he speaks proudly of a deal= that he considers to be a capstone to his 34-year career of helping build = a giant of the banking business.=20 ''This is the first merger I've been part of,'' said Mr. Harrison, the chie= f executive of the combined bank, ''where I feel our core business is compl= ete.'' The Chase-J. P. Morgan combination helped advance the bank into the investm= ent banking elite, just as Mr. Harrison intended. But with Wall Street and = the economy in far different places today than they were when the deal was = put together, the many mergers, stock sales and other money-making opportun= ities that were supposed to justify the high-priced acquisition have largel= y dried up for now.=20 Consequently, deal makers and analysts who follow the bank are already spec= ulating that Mr. Harrison, 58, may ultimately be compelled to do yet anothe= r large deal, this time to diversify his business away from its heavy empha= sis on Wall Street.=20 J. P. Morgan Chase has won some prominent assignments, like handling the re= vampings of troubled giants like Lucent and, more recently, Enron, the bele= aguered energy trading company.=20 But while J. P. Morgan Chase is proud of serving alongside Citigroup as bot= h lead lender and adviser to Enron on its acquisition by Dynegy, the dual r= ole it has worked to achieve sometimes proves complicated for the bank. Wit= h Enron's shares in free fall as more information comes out about its hidde= n debts, J. P. Morgan Chase has been scrambling to maintain the support of = other banks while simultaneously keeping the merger with Dynegy on track.= =20 Thanks largely to the slump on Wall Street, J. P. Morgan Chase's profits fe= ll by two-thirds in the third quarter, to $449 million from $1.4 billion in= the period a year ago. Its stock has dropped 15 percent this year, more th= an other banks' shares. The bank's stock is ahead of investment banks like = Goldman Sachs, with which J. P. Morgan Chase increasingly competes.=20 ''The jury is still out in many respects on this merger,'' said Judah Kraus= haar, an analyst at Merrill Lynch. Nevertheless, he likes J. P. Morgan Chas= e's stock, he said, because ''expectations are very low.''=20 All J. P. Morgan Chase's competitors are suffering from the slowdown on Wal= l Street. But some, like Citigroup, are better diversified and have greater= involvement in old-fashioned consumer banking, which is proving to be a st= rong moneymaker this year.=20 Nearly a third of J. P. Morgan Chase's revenues are consumer-oriented. By c= ontrast, its chief New York rival, Citigroup, gets half its revenues from c= onsumer businesses.=20 ''The timing of the merger was bad,'' said Steven Wharton, a banking analys= t at Loomis, Sayles & Company, which owns about a million J. P. Morgan Chas= e shares. ''There's no disputing that.''=20 Actually, Mr. Harrison disputes it. ''I can't tell you how happy I am about= having done this merger,'' he said in a recent interview. ''While there ar= e pluses and minuses to operating in a weak economic environment, we have a= much stronger platform to manage with during this difficult time.''=20 In Mr. Harrison's favor is his battle-tested team of top executives who hav= e worked together for a decade or more. Few executives remain in the top sp= ots from the old J. P. Morgan. Instead, most major posts are filled by mana= gers who have worked with Mr. Harrison since his days at Chemical Bank, whe= re he spent most of his career. Mr. Harrison's team successfully gobbled up= Manufacturers Hanover Bank in 1991, then followed that with Chemical's mer= ger with Chase Manhattan in 1996 before incorporating Morgan into the fold = last year.=20 The group of Chemical veterans includes Marc J. Shapiro, who oversees finan= ce and risk management at J. P. Morgan Chase; Donald H. Layton, one of two = leaders of investment banking; and James B. Lee Jr., the bank's senior deal= maker. The team also includes Dina Dublon, the bank's chief financial offi= cer.=20 Two other senior executives have also lived through big deals. Geoffrey T. = Boisi, the other investment banking leader, was the one-time investment ban= king chief at Goldman, Sachs. David A. Coulter, in charge of Chase's retail= bank, had been chief executive of Bank of America before it was bought by = NationsBank.=20 ''There aren't many teams that have gone through as many mergers as Bill Ha= rrison and his team,'' said Mark G. Solow, managing principal at GarMark Ad= visors, an investment firm, and a former senior executive at Chemical.=20 Still, Ms. Dublon acknowledged that the tough economy was making the J. P. = Morgan takeover more difficult than the earlier combinations.=20 ''In general, mergers are very hard on morale,'' she said. ''There is no qu= estion that this one has a tougher emotional toll.''=20 The bank's executives are making the best of a bad situation. They have tak= en advantage of the slowdown to cut around 8 percent of the combined banks'= staff, or about 2,500 more employees than anticipated at the time the merg= er was announced.=20 Many of these job cuts were aimed at high-cost investment bankers: J. P. Mo= rgan Chase expects that 6,000 jobs in its investment banking division will = have been eliminated by the end of the year.=20 ''We have focused on the tougher jobs to cut,'' Ms. Dublon said.=20 In some ways the overall market turmoil has made it easier for J. P. Morgan= Chase to overhaul its staff. With fewer jobs available on Wall Street, Mr.= Shapiro said, the employees who are left behind are less apt to complain a= bout changes in their jobs. ''People have fewer options,'' he said, ''so yo= u have a little more control over the process.''=20 Thanks partly to these cuts, the bank estimates the saving from cost cuttin= g will be $3.6 billion annually, compared with an original projection of $2= billion at the time of the merger.=20 The cost cutting has helped compensate somewhat for a sharp drop in profits= in the bank's core businesses. ''What we can control and are managing very= aggressively is the expenses of the company,'' Ms. Dublon said in a confer= ence call with reporters on Oct. 17, the day earnings were announced.=20 Aside from cost cuts, the weakness on Wall Street makes it hard for the ban= k's executives to point to tangible gains in investment banking, where fees= were down 24 percent in the third quarter. But Mr. Harrison points to mark= et-share gains the bank has achieved at the expense of competitors on Wall = Street. He hopes that when the investment banking business revives, J. P. M= organ Chase will hold on to these gains.=20 The bank is particularly proud of its standing in two areas: mergers and ac= quisitions, and the underwriting of large investment-grade bond deals.=20 The bank ranked 5th worldwide in the highly profitable category of advising= on mergers during the first nine months of 2001, up from Chase's 12th-plac= e finish and J. P. Morgan's 10th-place standing during the same period last= year, according to Thomson Financial Securities data.=20 The merger and acquisitions business, which Chase had been slowly building = for years, is stronger following the merger with J. P. Morgan, said Mr. Lee= , a vice chairman at the bank. As a result, the bank is able to win assignm= ents providing advice to customers who dealt with the old Chase only for lo= ans.=20 Mr. Lee remains proud of the bank's work with Enron, the energy company, de= spite its troubles. J. P. Morgan Chase, along with Citigroup, raised $1 bil= lion in bank financing for Enron earlier this month. It was also hired to a= dvise the company, which hopes to be saved from collapse by being taken ove= r by Dynegy.=20 The old Chase, long a lending powerhouse, would have had a good shot at lea= ding the bank financing, but an advisory role would have been less certain.= Mr. Lee said the investment banker advising Enron came from the old J. P. = Morgan. But with merger activity slow, there are few such deals to go aroun= d.=20 The bank is also proud of its strength in long-term investment-grade bonds,= another area that business executives say has been enhanced by the merger.= It moved up to second place in that area so far this year, compared with s= ixth place a year ago.=20 The bank has taken advantage of a boom in large corporate bond offerings, a= surge driven by today's low interest rates. In May J. P. Morgan Chase rais= ed $12 billion in bonds for WorldCom, the telecommunications company, in th= e largest corporate debt deal in the United States on record.=20 Unfortunately for J. P. Morgan Chase, the fees for underwriting investment-= grade debt are small compared with the money to be earned coordinating offe= rings of stock, where J. P. Morgan Chase remains a second-tier competitor.= =20 The bank actually lost market share in the rankings for underwriters of sto= ck, falling to 9th place this year, compared with the old J. P. Morgan's 6t= h-place finish a year ago. (Chase was 11th.)=20 Mr. Harrison said the bank was taking advantage of the slowdown in stock of= ferings to build momentum slowly in that business. ''We think we have a cha= nce in the second half of this year to be in the top five,'' he said.=20 Given the slowdown, some bankers predict that Mr. Harrison will ultimately = do another deal, either to expand his consumer banking business or to bolst= er weak areas in investment banking, like the equity division.=20 ''The general view is that the combination with J. P. Morgan didn't do enou= gh,'' one investment banker said.=20 Mr. Harrison disagrees: ''I don't feel,'' he said, ''we need to do another = large deal to be successful.'' Photo: William B. Harrison Jr., the chief executive, says he has no doubts = about the wisdom of forming J. P. Morgan Chase, even though the the economy= has slowed since then. ''I can't tell you how happy I am about having done= this merger,'' he said. (Associated Press) Chart: ''Still Looking for the = Right Mix'' When J. P. Morgan and Chase announced their merger in September= 2000, the combination's strength in investment banking seemed sure to be s= uccessful. But the bank's stock has suffered with Wall Street's slump, and = its more consumer-oriented and better-diversified rival, Citigroup, has far= ed better. Graph tracks the daily closing prices of Citigroup and J. P. Mor= gan Chase shares from September 2000 through November 2001. A DIFFERENT BLE= ND OF BANKING Based on revenue, before overhead expenses (first nine months= of 2001). J. P. MORGAN CHASE* Consumer and small business: 32% Investment = management and private: 9% Corporate and investment: 58% CITIGROUP Consumer= and small business: 54% Investment management and private: 4% Corporate an= d investment: 42% *Does not add to 100 because of rounding. (Sources: Bloom= berg Financial Markets; company reports)=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 COMPANIES & FINANCE THE AMERICAS - Enron 'awaiting' capital injections, say= officials. By ROBERT CLOW. 11/23/2001 Financial Times (c) 2001 Financial Times Limited . All Rights Reserved Officials working to shore up Enron's balance sheet yesterday said the stru= ggling energy trader hoped to receive capital injections of more than $1.5b= n as early as next week.=20 Enron is in talks about $250m investments with JP Morgan Chase and Citigrou= p and is also hoping to raise at least $1bn from private equity investors. People close to Enron declined to comment on which buyout firms might wish = to invest in Enron. However, the Blackstone Group, which was reported to be= talking to the company before Dynegy made its $9bn rescue bid, is understo= od no longer to be doing so.=20 Members of the 20-strong bank lending group, led by JP Morgan Chase and Cit= igroup, are being asked to defer the maturities of their upcoming debt unti= l after the completion of the merger.=20 The moves comes as reports from Goldman Sachs and Fitch, the credit rating = agency, raised questions about the company's cash flow and its medium-term = viability.=20 David Fleischer, a Goldman Sachs analyst, argued that cash balances were in= adequate to meet $2.8bn of debt obligations falling due before the end of t= he year.=20 People close to Enron say that nearly $1bn of that debt has already been re= structured.=20 The Fitch report said that if the Dynegy deal was not completed, Enron woul= d struggle to meet $9bn of obligations due before the end of next year.=20 People close to Enron insisted that Dynegy remained committed to the merger= and played down talk of renegotiation.=20 Dynegy would shortly issue a statement reasserting its commitment to the de= al, they predicted.=20 (c) Copyright Financial Times Ltd. All rights reserved.=20 http://www.ft.com. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: UPDATE 2-Enron bleeds again as Dynegy deal doubts grow. 11/23/2001 Reuters English News Service (C) Reuters Limited 2001. (dateline previous NEW YORK, changes byline, updates with bond prices, deta= ils throughout)=20 By C. Bryson Hull HOUSTON, Nov 23 (Reuters) - A long weekend of work faced Dynegy Inc. and pr= oposed acquisition Enron Corp.,, whose worsening stock woes on Friday whipp= ed up fear that the deal could be renegotiated or collapse entirely.=20 Houston-based Dynegy and its advisers were expected to spend the long holid= ay weekend reviewing larger cross-town rival Enron's complex books, as both= parties race against the decline in Enron's stock to complete the thorough= financial examinations a merger requires.=20 Enron shares ended down more than 5 percent, or 27 cents, to $4.74 at the c= lose of abbreviated Friday trading on the New York Stock Exchange. Dynegy s= hares closed up 64 cents, or 1.61 percent, to $40.40.=20 Dynegy on Nov. 9 agreed to pay about $9 billion in stock for Enron. But, af= ter falling 45 percent by Friday's close amid fears it could run out of cas= h before the deal closes, Enron's market capitalization is only about $4.03= billion.=20 At Dynegy's current stock price, its offer for Enron is worth about $10.85 = a share - more than twice Enron's current share price.=20 Executives and advisers from both companies are in the final stages of the = review, known as due diligence, sources familiar with the matter told Reute= rs. The sources said renegotiations had not been discussed as of Friday aft= ernoon, and that such discussions could not occur until the due diligence r= eview is finished.=20 But should it turn up any more unpleasant surprises that qualify as a "mate= rial adverse change" in Enron's business, the likelihood increases of Dyneg= y invoking escape clauses or renegotiating, analysts and observers say.=20 "You've got to believe there is that possibility. There is a 90 percent spr= ead on the deal," said one analyst. "There's unquestionably continued malai= se in Enron's core business and Dynegy has left itself open to renegotiate = with Enron."=20 UBS Warburg analyst Ron Barone on Wednesday wrote in a research report that= the likelihood was "soaring" that Dynegy might discover a material adverse= change.=20 Enron spokeswoman Karen Denne said that, to her knowledge, Dynegy was not r= enegotiating the terms of the acquisition.=20 She repeated that Enron was working on obtaining an additional $500 million= to $1 billion in private equity funding to help shore up the balance sheet= .=20 Dynegy spokesman John Sousa said due diligence was continuing and said the = company remains optimistic about the merger.=20 TRADERS FEARING RENEGOTIATION=20 Enron's recent admission that lower volumes at its trading business - the c= rown jewel of Enron that Dynegy most covets - could cause low fourth-quarte= r earnings raises the possibility that the trading business is losing its p= rofitability. Continued losses there would remove a key attraction for Dyne= gy.=20 Electricity traders said the latest developments are making it seem more li= kely that Dynegy will renegotiate the deal or back out entirely, a move the= y said would leave Enron vulnerable to creditors and a possible bankruptcy.= =20 This week rating agency Fitch Investors said that if Dynegy stepped away fr= om the merger, Enron's credit situation seemed untenable and a bankruptcy f= iling was highly possible.=20 Traders, speaking on condition on anonymity, said they expected Dynegy to s= cramble over the weekend to narrow the growing share price gap. Enron's dep= leted market value and the shrinking volume in its EnronOnline trading syst= em makes it more likely Dynegy could pull out, traders said.=20 Meanwhile, energy traders reiterated that they would shy away from long-ter= m deals with Enron unless they received substantial assurances the company'= s credit rating would soon improve.=20 Enron's bonds on Friday were again talked at junk-bond levels, but even low= er than before.=20 Enron's 6.4 percent notes maturing in 2006 and its 6.75 percent notes were = bid Friday at 57 cents on the dollar, down from a respective 62 and 60 cent= s on Wednesday, according to a trader. The notes yield to maturity a respec= tive 21.5 percent and 17 percent. Its 20-year zero-coupon convertible bonds= fell about 1 cent on the dollar to just over 33 cents.=20 Enron is hovering at the edge of investment-grade as the three main credit = trading agencies consider whether to cut them again, and some observers won= der how Enron has avoided it.=20 "A bond trading in the 50s has nothing to do with an investment-grade secur= ity," said Scott Smith, a principal at Wells Capital Management in San Fran= cisco, where he invests $6 billion in debt and does not own Enron.=20 (Additional reporting by Jim Jelter in San Francisco, Andrew Kelly in Houst= on and Carolyn Koo, Arindam Nag, David Howard Sinkman and Jonathan Stempel = in New York)). Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: Enron avoids junk status, but observers wonder how. By Jonathan Stempel 11/23/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 23 (Reuters) - It is rare that holding onto investment-grade = credit ratings means as much to a company as it does now to beleaguered ene= rgy trader Enron Corp. , and some observers are wondering why a cut to junk= status is taking so long.=20 "The sum of all knowledge is in the valuation of the stock and the bonds," = said Scott Smith, a principal at Wells Capital Management in San Francisco,= where he invests $6 billion in debt, and does not own Enron. "A bond tradi= ng in the 50s has nothing to do with an investment-grade security." Enron's 6.4 percent notes maturing in 2006 and 6.75 percent notes were bid = Friday at 57 cents on the dollar, down from a respective 62 and 60 cents on= Wednesday, a trader said. The notes yield to maturity 21.5 percent and 17 = percent.=20 Meanwhile, Enron's shares have sunk 94 percent this year. Since October 16,= when it released third-quarter results, which it has since revised downwar= d, its shares have fallen 86 percent, and its bonds by nearly half.=20 Houston-based Enron, which is trying to merge with smaller cross-town rival= Dynegy Inc. , has been rocked this year by accounting problems, earnings r= estatements, a federal investigation and a top management shuffle.=20 Its advisers were expected this weekend to pore over the company's books, w= hich could lead to a renegotiation of the merger, sources familiar with the= matter said.=20 Moody's Investors Service and Standard & Poor's have cut its senior unsecur= ed debt ratings twice in the last month to their current "Baa3" and "BBB-mi= nus," their lowest investment grades. Fitch has cut its equivalent rating t= o "BBB-minus," and all three agencies have warned of more possible cuts.=20 The stakes could hardly be higher.=20 CASH CRUNCH=20 A downgrade to "junk" status could imperil Enron's trading business, force = it to pay off as much as $3.9 billion of debt issued mostly by two trusts, = and possibly force it to seek bankruptcy protection, analysts said.=20 Enron said in a securities filing it recently had less than $2 billion of a= vailable cash and credit lines.=20 S&P said on Tuesday that Enron faces "liquidity issues," but enjoys an "ali= gnment of interests" with its banks and a near-term financial position that= "is expected to be sufficient" to allow the Dynegy merger.=20 Fitch, meanwhile, said on Wednesday that "our present 'BBB-minus' rating re= sts on the merger possibility and continued support of the lending banks."= =20 If Dynegy walks away, it said, "Enron's credit situation seems untenable wi= th a bankruptcy filing highly possible."=20 Enron said on Monday it had $9.15 billion of obligations due through next y= ear, and a $690 million note that could come due next Tuesday. It later sai= d it got a three-week reprieve.=20 INVESTMENT BANKS=20 Sean Egan, managing director of Egan-Jones Ratings Co. in Philadelphia, lik= ened Enron's ratings situation to those of California's two largest utiliti= es, Pacific Gas & Electric Co. and Southern California Edison .=20 Despite investor unease, those utilities kept their investment-grade rating= s only until they defaulted on debt in January, as California's power crisi= s worsened.=20 On November 8, a day before the Dynegy merger was announced, senior officia= ls from Enron's lead banks - William Harrison, chief executive of J.P. Morg= an Chase & Co. , and Michael Carpenter, who runs Citigroup Inc.'s investmen= t banking arm - met with Moody's to help allay that agency's concerns, a pe= rson familiar with the meeting said.=20 A day later, Moody's, which issued no statement on Enron this week, downgra= ded the company's senior unsecured debt rating, but only to its current "Ba= a3."=20 "Pressure is coming from the investment banks, which have a vested interest= in seeing the Dynegy deal go through," said Egan, whose agency rates Enron= 's debt "BB," its second-highest junk grade. "Investment banking fees will = be substantial."=20 Companies pay for Moody's and S&P ratings, which they need to obtain financ= ing. Egan said his agency receives no such payments.=20 Citigroup and J.P. Morgan declined to comment. Moody's and S&P did not imme= diately return phone calls. Fitch was not immediately available for comment= . Dynegy and Enron on Wednesday, however, reaffirmed their commitment to th= e merger.=20 Wells Capital's Smith isn't sure what to expect.=20 "Enron will remain definitively investment grade if the merger as billed go= es through, ... but there are half a dozen things that could go wrong," he = said. "Obviously, the equity markets are telling you it's very skeptical th= e merger will go through, and the bond market is following its lead."=20 (Additional reporting by Carolyn Koo and Arindam Nag.). Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: US Corp Bonds-Enron slips again in quiet market. By Jonathan Stempel 11/23/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 23 (Reuters) - The U.S. corporate bond market saw very little= activity on Friday, with many traders leaving even in advance of the early= close, though Enron Corp.'s bonds weakened for a third straight session am= id concern over the energy trader's liquidity, and whether its merger with = Dynegy Inc. can go through.=20 "Deadly" was how one trader described activity. Spreads, the yield differen= ce between investment-grade bonds and comparable maturity U.S. Treasuries, = finished unchanged on balance, as did junk bond prices, traders said. Enron's 6.4 percent notes maturing in 2006 and its 6.75 percent notes were = bid at 57 cents on the dollar, down from a respective 62 and 60 cents on We= dnesday, according to a trader. The notes yield to maturity a respective 21= .5 percent and 17 percent. Its 20-year zero-coupon convertible bonds fell a= bout 1 cent on the dollar to just over 33 cents.=20 Meanwhile, Enron's shares fell 5.4 percent, as its advisers prepared this w= eekend to pore over the company's books, sources familiar with the matter s= aid. Analysts said there could be a renegotiation of the Dynegy merger.=20 "The sum of all knowledge is in the valuation of the stock and the bonds," = said Scott Smith, a principal at Wells Capital Management in San Francisco,= where he invests $6 billion of debt, none from Enron. "A bond trading in t= he 50s has nothing to do with an investment-grade security."=20 Ten-year Treasuries closed down 12/32, as their yields rose to 5.011 percen= t.=20 JUNK BOND FUNDS ENJOY INFLOWS=20 Separately, investors poured cash into U.S. junk bond mutual funds for a se= cond straight week amid a newfound tolerance for riskier assets.=20 Investors added a net $628.5 million of cash to the funds in the week endin= g Tuesday, on top of $816.3 million in the prior week, according to AMG Dat= a Services.=20 The two-week inflow is the largest since the second and third week of Janua= ry. The bonds rose more than 6 percent that month, according to Merrill Lyn= ch & Co.=20 "Financial markets have rallied on hopes that the economy will get better i= n the not-too-distant future," said Jan Hatzius, senior economist at Goldma= n Sachs & Co. "A lot of the optimism right now is hope rather than reality,= but we should see signs of improvement in a month or two."=20 Through Thursday, junk bonds have returned 2.93 percent in November alone, = beating all other bonds, and are up 4.71 percent this year, Merrill Lynch d= ata show. The bonds still yield 7.98 percentage points more than Treasuries= , but that's down from 9.29 percentage points at the start of the month.=20 Companies this week sold about $3.83 billion of investment-grade, $533 mill= ion of junk, and $3.3 billion of convertible debt. Investors expect about t= hree more weeks of overall active issuance before the usual year-end slowdo= wn. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: Enron shares seesaw on concerns over Dynegy deal. 11/23/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 23 (Reuters) - Shares of Enron Corp. fluctuated wildly on Fri= day morning, as concerns grew over rival Dynegy Inc.'s $9 billion acquisiti= on of the beleaguered energy trader.=20 Enron shares were down 8 cents, or 1.6 percent, to $4.93 in Friday morning = trading on the New York Stock Exchange, after diving more than 8 percent ea= rlier. The shares are down because of talk that the terms of Dynegy's deal with En= ron could be changed or that the deal could collapse.=20 Dynegy originally agreed to pay about $9 billion in stock for Enron. But, a= fter falling 42 percent since then by Wednesday's close, Enron now sports a= market capitalization of only about $4.26 billion.=20 In a report on Wednesday, Ronald Barone, an analyst at UBS Warburg, suggest= ed that the deal's current exchange ratio of 0.2685 share of Dynegy for eac= h share of Enron could well be readjusted.=20 He suggested that a much lower exchange ratio of 0.15 was more realistic.= =20 "You've got to believe there is that possibility. There is a 90 percent spr= ead on the deal," said one analyst, referring to a potential renegotiation.= =20 "There's unquestionably continued malaise in Enron's core business and Dyne= gy has left itself open to renegotiate with Enron," he continued.=20 Some of Enron's trading partners have scaled back their activity, causing t= hat "malaise." Lower volumes at its trading business, which is the largest = and most coveted portion of its operation, could cause fourth-quarter earni= ngs to come in below expectations, Enron has said. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 TALES OF THE TAPE: Energy Traders' Perfect Storm Stalls By Christina Cheddar Of DOW JONES NEWSWIRES 11/23/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Here's one 2001 outlook that couldn't have been more= wrong.=20 Around this time last year, pundits and fund managers were touting "the per= fect storm" of market forces that were coming together to make the energy t= rading business one to watch in 2001. Then came the California power crisis, and allegations of price-gouging and= fears of credit defaults began to cloud the outlook for the group. That wa= s followed by renewed volatility in power prices, and this time the prices = were headed down, not up.=20 And then came a crushing blow against trading firms - the unraveling of the= industry's largest player, Enron Corp. (ENE).=20 Simply put, the perfect storm stalled, and a business once buoyed by high g= as prices, strong demand and tight supply now lies in tatters.=20 The stocks of companies whom some say should be valued more like growth sto= cks than utilities are instead mired at around nine-times earnings - about = where traditional utilities trade.=20 And the chance for recovery in 2002?=20 Basu Mullick, portfolio manager of the Neuberger Berman Partners fund, is w= illing to bet there is. He thinks energy traders deserve at least the same = price-to-earnings multiple as the broader market's median, which is current= ly between 16- to 17-times future earnings, he said. It's just a matter of = time before the stocks get there.=20 "They were just recovering from Gray Davis," Mullick said, referring to the= governor of California, who had accused "out-of-state" energy traders of a= rtificially inflating the price of power in the state, and triggering the s= tate's energy crisis. "Now, they are recovering from Enron."=20 The fund manager also blames lower commodity prices, warm weather and poor = demand for the recent weak performance in the group.=20 "Energy convergence companies are putting up terrific growth rates," he sai= d. "I don't think they should get the same valuation as a garden-variety ut= ility."=20 Still, others think the stock market is continuing to make distinctions bet= ween the energy traders by taking a harder look at the companies' strategie= s and financial disclosures.=20 Enron's precarious financial situation underscores the importance of accoun= ting issues. Although many of Enron's financial problems aren't solely the = fault of mark-to-market accounting issues, there has been growing attention= paid to this form of financial reporting because of the earnings volatilit= y it can create.=20 Answers Elude Investors=20 Investors are asking hard questions, and not always getting the answers the= y want.=20 Using mark-to-market methods, a company calculates the fair market value of= a commodity position - whether it's a contract, an option, a swap, etc. - = at the time, even if the value of the position is realized over a longer pe= riod. The problem with this method is the actual cash a company realizes fr= om the position might not be the same value the company calculated in its o= riginal assessment. Also, sometimes it isn't easy to calculate the fair val= ue of the commodity position. This is particularly true in instances where = the market for the commodity isn't liquid.=20 Over time, companies with the highest level of disclosure regarding their m= ark-to-market gains will most likely trade at higher multiples to counterpa= rts that provide little or no disclosure, said ABN AMRO Inc. analyst Paul P= atterson.=20 Encouragingly, it appears companies may already be responding to the call f= or added disclosure. According to a survey Patterson conducted, more compan= ies with energy trading units were willing to disclose the details of their= mark-to-market accounting practices during third-quarter conference calls = compared with those in the second quarter.=20 Patterson said he prefers earnings that are cash-based.=20 "All things being equal, we believe reported earnings that more closely ref= lect the timely realization of cash have a higher quality associated with t= hem than earnings that do not," he said.=20 He expects investors to become smarter and learn to distinguish between ear= nings growth through accrual accounting and growth fueled by mark-to-market= accounting.=20 At the end of the day, it is not a matter of simply producing profits, but = being able to say where those earnings came from, said one investor, who ma= nages a pension fund.=20 Some investors also may be placing a greater emphasis on the cash flow the = energy merchants produce.=20 Tim O'Brien, portfolio manager of the Gabelli Utilities Fund, said energy m= erchants that own the physical power assets to back up their trading positi= ons should trade at a premium to an independent power producers and traditi= onal utility companies. Still, the stocks should be valued at less than the= growth rate of the company because of their heavy exposures to commodity p= rices.=20 Energy merchants include companies such as Dynegy Inc. (DYN), Duke Energy C= orp. (DUK) and Dominion Resources Inc. (D).=20 According to O'Brien, the group never deserved to have the price-to-earning= s multiples above 20- to 30-times earnings, which were once paid for the st= ocks.=20 "We all got sucked up by the up-leg of the cycle and forgot just how cyclic= al these companies are," O'Brien said, adding that the average multiple sho= uld be in the high single-digits to the high-teens.=20 As for independent power producers - which are companies without regulated = operations that own power plants to generate electricity to sell and trade = in the wholesale market - the group may wind up being valued on the basis o= f the replacement costs of the assets in their portfolio, according to O'Br= ien.=20 "One analogy is that they are basically like commercial real-estate plays,"= O'Brien said.=20 That could mean stocks such as Calpine Corp. (CPN), which is already in the= lower-half of its trading range, may have further to fall.=20 -By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar= @dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 U.S. Energy Exhange May Scrap Online Platform Plans By Stephen Parker Of DOW JONES NEWSWIRES 11/23/2001 Dow Jones Energy Service (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- The world's largest energy futures exchange is takin= g a second look at plans to launch a major new electronic trading platform = known as eNymex, and may decide to scrap them.=20 Management changes at the New York Mercantile Exchange, along with the succ= ess of Access, an online platform the exchange expanded in September, have = prompted the move. Nymex may decide to combine parts of eNymex with Access, according to sourc= es close to the matter. It is also exploring the idea of alliances with oth= er exchanges, and considering developing "e-mini" contracts - smaller energ= y contracts for Internet-based trade by retail investors.=20 "There's new management in place at the exchange," said Nymex spokeswoman N= achamah Jacobovits. "They're rethinking all of our business strategies, and= one very massive strategy was the idea of this major eNymex B2B (business-= to-business) system launch with a whole new slate of products."=20 Nymex and GlobalView Software Inc., a company that initially worked on buil= ding the eNymex trading system, have sued each other in a dispute over work= on the project.=20 Kiodex, an electronic-trading technology firm that has developed the back e= nd of the eNymex system, took on added development work for the project aft= er GlobalView departed. The trade engine Kiodex was asked to build is "subs= tantially complete, but the company can't speak to Nymex's overall electron= ic-trading strategy," a Kiodex source said.=20 The eNymex platform was conceived as a forum for trading over-the-counter e= nergy products, but Nymex has already moved ahead with plans for trading so= me of them on Access, initially an overnight trading system that was expand= ed in September. It hopes, for example, to launch gas swaps based on delive= ry at the Henry Hub within the next six weeks on Access, Jacobovits said.= =20 "We've expedited plans for a Henry Hub natural gas swap contract," Jacobovi= ts said. "Traders could be looking for OTC clearing on a neutral-based plat= form, which is a factor in that decision."=20 Before Sept. 14, Access was used only to trade energy futures at night, aft= er the day's Nymex session had ended. Use was limited to Nymex members with= dedicated phone systems.=20 The exchange had been planning to expand use of Access, but ended up doing = so sooner than it had expected. On Sept. 14, it started offering Access tra= ding over the Internet, a move that will eventually allow Nymex to open up = trade to more users.=20 The move was intended to help keep futures markets liquid after the Sept. 1= 1 attack on the World Trade Center. Nymex's building, located near where th= e trade towers stood, was shut down for several days after the attacks. Exp= anding its already existent Access system to the Internet helped ease poten= tial liquidity problems that could have arisen from shortened floor trading= hours after Nymex reopened.=20 Development of the eNymex system began last year under the direction of for= mer Nymex Chairman Daniel Rappaport. In August, Nymex said it would launch = the eNymex platform within four to eight months. New Nymex President J. Rob= ert "Bo" Collins Jr. said then that vendor problems had slowed development = of the system's front-end technology and caused the delays. But he still ex= pected eNymex to launch without any meaningful changes to its original prod= uct line.=20 If Nymex combines parts or all of the platform originally intended as eNyme= x with Access, the new system may end up being known as eNymex.=20 "eNymex right now is looking for a new mission," said an industry source cl= ose to Nymex. "You know how politics works. We don't scrap it, we just rena= me it. Anything we do electronically is now going to be called eNymex. But = the original deal and concept that Rappaport initiated is done."=20 Nymex's reconsideration comes as the energy-trading world undergoes rapid c= hange. The two most successful online energy trading platforms -- Enron Cor= p.'s (ENE) EnronOnline, and IntercontinentalExchange, or ICE -- have seen t= heir luck turn - in opposite directions.=20 Enron Corp. (ENE), which accounts for about 25% of the trade in U.S. power = and gas markets, faces questions about its creditworthiness as the Securiti= es and Exchange Commission investigates complicated financial dealings. Enr= on's possible merger with Dynegy Inc. (DYN), now appears to be in doubt, an= d energy trading companies are pulling back their exposure to the company.= =20 Enron executes about 60% of its power and gas trades on EnronOnline. When E= nron's troubles surfaced last month, Nymex quickly moved to extend its clea= ring services to over-the-counter natural gas derivatives, a move the tradi= ng community saw as an attempt to grab market share.=20 ICE, on the other hand, is moving ahead with plans to capture more energy t= rade on its electronic format. ICE closed a deal this summer to acquire the= London-based International Petroleum Exchange - Nymex's chief competitor a= nd Europe's largest traditional energy exchange. It plans to move all IPE e= nergy contracts to its Internet-based system and offer clearing services fo= r some over-the-counter contracts.=20 Nymex is exploring alliances that could give it a better footing in the new= competitive landscape. One idea under review is a joint venture with the C= hicago Mercantile Exchange to offer e-mini contracts for Nymex products on = CME's Globex electronic-trading system, the person close to Nymex said.=20 Nymex officials wouldn't confirm whether they're talking with the CME, but = they said the relationship between the exchanges is a warm one.=20 "Nymex is always open to strategic alliances," Jacobovits said. "There's no= thing we've agreed to at this point, but we have open dialogue with a numbe= r of exchanges concerning strategic alliances. We have a good relationship = with the Chicago Merc, and we certainly would be open to working with them.= "=20 Shortly after the Sept. 11 terrorist attacks in New York shut down the Nyme= x trading floor, the CME said it would be willing to offer Nymex products o= n its Globex system until Nymex resumed operations, Jacobovits said.=20 -By Stephen Parker, Dow Jones Newswires; 201-938-4426; stephen.parker@dowjo= nes.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron Woes May Endanger Plans For Mozambique Steel Proj 11/23/2001 Dow Jones International News (Copyright (c) 2001, Dow Jones & Company, Inc.) MAPUTO, Mozambique (AP)--The recent downturn in fortunes for U.S. energy co= mpany Enron Corp. (ENE) may quash hopes for the construction of a natural g= as-fueled factory to produce steel slabs for export in Mozambique, official= s said Friday.=20 One of the largest companies in the U.S., Enron is struggling amid potentia= lly new cash-flow and earnings problems. The Houston-based company was to i= nvest $1.1 billion in the Maputo Iron and Steel Project, a factory that onc= e built, was expected to produce two million tons of steel slabs a year. But Mozambican Prime Minister Pacoal Mocumbi said that the government hoped= that, "Enron's current difficulties will not lead to the cancellation of t= he project."=20 "My government wants to know from Enron what is going on so that we are not= held hostage to a lack of information," Mocumbi said.=20 No immediate comment was available from Enron officials in Mozambique.=20 The planned project is part of long-standing efforts to exploit vast natura= l gas reserves in Mozambique and transport and sell the product into the in= dustrial heartland of South Africa.=20 Mozambique has two massive gas fields: Temane is operated by the U.S.'s Atl= antic Richfield Co., Sasol of South Africa, and Zarara Petroleum of Dubai, = while Pande is operated by Enron. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 STOCKWATCH Enron down, Dynegy up on lingering merger uncertainty 11/23/2001 AFX News (c) 2001 by AFP-Extel News Ltd NEW YORK (AFX) - Enron Corp shares were lower, while Dynegy Inc was slightl= y higher in late morning trade on lingering uncertainty about their propose= d merger following a news report that Enron's SEC filing last Monday contai= ned details that were not known to acquirer Dynegy, dealers said.=20 At 11.15 am, Enron shares were trading down 17 cents at 4.84, a decline of = 3.3 pct. Dynegy was up 44 cents at 40.20. The DJIA was up 57.70 points at 9,892.86. The S&P 500 was up 6.24 points at= 1,143.27. The Nasdaq composite was up 11.94 points at 1,886.99=20 Earlier, the Wall Street Journal quoted an unnamed source as saying Monday'= s SEC filing contained information on the company which was unknown to prop= osed buyer Dynegy.=20 Dynegy representatives are planning to work through the weekend evaluating = the significance of this information as part of their due diligence on Enro= n, the paper said. It did not specify the nature of the information.=20 In the filing, Enron revealed a number of new financial problems including = a possible obligation to repay a 690 mln usd note due Nov 27.=20 On Wednesday, the company said it had received an extension on the repaymen= t until mid-December, which it said was enough time to restructure the debt= .=20 The company also said it was in active talks with its creditors and expecte= d to be able to restructure other debt and remain solvent long enough for t= he merger with Dynegy to be completed.=20 Dynegy welcomed the news and said it will push ahead in seeking regulatory = approval for the merger. But investors are concerned that the constant surp= rises in restated earnings and revelations of liquidity problems at Enron m= ay cause Dynegy to walk away from the deal.=20 UBS Warburg analyst Ronald Barone lowered Enron's fourth-quarter earnings p= er share estimate to a loss of 25 cents from earnings of 25 cents, arguing = that its business will suffer until its liquidity problems are resolved.=20 The analyst cut his full year estimate to 1.10 usd from 1.60 usd and 2002 e= stimate to 75 cents from 1.65 cents.=20 If his figures prove to be correct, they would make Dynegy's current merger= exchange terms -- of 0.2685 Dynegy shares for each Enron share owned -- mo= derately dilutive.=20 "We reiterate that if the merger with Dynegy were to run into obstacles (or= fall through entirely) Enron shares could come under severe pressure as in= vestors may question its ability to sustain liquidity (and normal business = activities) for an extended period of time," Barone said in a note. "Under = such a scenario, bankruptcy would not be out of the question."=20 Credit Suisse First Boston analyst Curt Launer was more upbeat, and said th= e share's decline in recent sessions has been overdone.=20 "Our industry contacts and discussions with traders indicate that while tra= ding with Enron has slowed, it certainly has not stopped," said Launer.=20 For Dynegy, the merger with Enron still "represents a dramatic plus," he sa= id.=20 cl/gc For more information and to contact AFX: www.afxnews.com and www.afxp= ress.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: Houston economy seen weathering major layoffs. By Ellen Chang 11/23/2001 Reuters English News Service (C) Reuters Limited 2001. HOUSTON, Nov 23 (Reuters) - Houston's economy, buffered by a broad and dive= rse tax base, should be able to weather thousands of layoffs from some of t= he city's major corporations, including energy powerhouse Enron Corp., econ= omists and analysts said.=20 Financially ailing Enron Corp. , which has 21,000 employees worldwide and i= s in talks to be bought by Houston-based rival Dynegy Inc. , is the third m= ajor employer in the city to announce severe financial problems in recent m= onths. Analysts expect layoffs if the merger occurs. Continental announced a layoff of 3,000 employees after the Sept. 11 attack= s and Hewlett-Packard Co.'s plan to buy Compaq Computer Corp. will, if fina= lized, result in 15,000 layoffs at the two companies. Compaq also announced= 8,000 layoffs worldwide in July.=20 "It's fair to say that the potential layoffs at Enron and the layoffs at Co= ntinental, taken alone, are negative factors, although probably small in th= e grand scope of the Houston economy," said Phil Scheps, director of Housto= n's finance and administration department.=20 Since last month when Enron became a target of a Securities and Exchange Co= mmission investigation into financial dealings with partnerships, the energ= y giant's market share has steadily eroded.=20 While neither Enron nor Dynegy have given any indication of the number of l= ayoffs that could hit Houston, Barton Smith, director of the Institute for = Regional Forecasting at the University of Houston, said the layoffs "will b= e spread out over a long period of time and will not be excessive."=20 Robin Kapiloff, an analyst at Moody's Investors Service, said the city's ef= forts to diversify its economy over the past decade will protect its revenu= e collections, even as some of the city's biggest employers suffer. "We're = watching to see where things go now," she said.=20 Alex Fraser, a director at Standard & Poor's, said the ratings agency isn't= concerned about Houston's credit position at this point. "While Enron is c= ertainly a large player and prominent corporation, we're unclear on what th= e impact would be."=20 While the fourth largest city in the country experienced a bit of a slowdow= n since the Sept. 11 attacks, Houston has outperformed the rest of the nati= on.=20 With a tax base of $87.3 billion in 2001, Houston is also buffered by the T= exas Medical Center, the city's largest employer. Next year the city's tax = base is estimated to grow to $95 billion.=20 Still, the national recession, energy price weakness in general, and the in= itial loss of consumer confidence related to the attacks has caused the cit= y to reduce its estimate of sales tax growth to 1.5 percent from 5 percent.= That revised estimate equals a $13 million reduction in the city's $1.4 bi= llion budget.=20 But the city's property tax revenue has not been affected. Only a small cha= nge in property tax collections is expected in 2002 because valuations are = based on Jan. 1 data and for most of 2001, real estate growth was very larg= e, Scheps said.=20 While recent economic indicators appear positive, and consumer confidence h= as quickly rebounded, a better read on the strength of Houston's tax revenu= e collections will be available in February when the city receives data for= the December holiday season, Scheps said. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Dabhol Pwr Confirms Arbitrator Panel Mtg In Singapore Sat 11/23/2001 Dow Jones International News (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW DELHI -(Dow Jones)- An official from India's Dabhol Power Co. confirmed= Friday that a panel of arbitrators will meet in Singapore Saturday to disc= uss international arbitration proceedings initiated by DPC against Maharash= tra state government.=20 Dabhol, a 2,184 megawatt power project in the western Indian state of Mahar= ashtra, is a unit of the U.S.-based energy company Enron Corp. (ENE). Dabhol Power Co. initiated the arbitration against the state government for= not honoring its guarantees on power bills due for December 2000 and Janua= ry, following Maharashtra State Electricity Board's failure to meet payment= s.=20 The Singapore meeting is likely to be followed by the actual arbitration pr= ocess in the London court, according to a Friday report in the Hindu Busine= ss Line daily.=20 The panel, which has been appointed by DPC and the Maharashtra state govern= ment, includes an independent observer.=20 -By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dow= jones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron SEC filing contained information Dynegy was unaware of - report 11/23/2001 AFX News (c) 2001 by AFP-Extel News Ltd NEW YORK (AFX) - Monday's SEC filing by Enron's Corp contained information = that proposed buyer Dynegy Inc had not known about, the Wall Street Journal= quoted a person familiar with the merger plans as saying.=20 Dynegy representatives plan to work through the weekend evaluating the impo= rtance of this new information as part of the company's due diligence on En= ron, the source said, without specifying what the new information was.=20 In the filing, Enron disclosed hundreds of millions of dollars of potential= additional write-offs as well as the possibility that its weakening financ= ial condition could force it to repay more than 2 bln usd in loans by the e= nd of the year. Dynegy announced Wednesday that it is working to accelerate regulatory appr= ovals required to complete the acquisition in accordance with the previousl= y announced agreement.=20 The Journal quoted analysts as saying Dynegy is coming under increasing pre= ssure to renegotiate or walk away from the deal.=20 It also cited Fitch director Ralph Pellecchia as saying that, without the D= ynegy acquisition and continued support from its bankers and customers, an = Enron bankruptcy-court filing "is highly possible".=20 jms For more information and to contact AFX: www.afxnews.com and www.afxpre= ss.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Dynegy's Decision to Buy Enron Hits Crossroads Amid Rising Financial Woes 11/23/2001 Dow Jones Business News (Copyright (c) 2001, Dow Jones & Company, Inc.) Even as it reiterated its intention to purchase Enron Corp., Dynegy Inc. is= coming under increasing pressure to renegotiate or walk away from the mult= ibillion-dollar deal, Friday's Wall Street Journal reported.=20 The pressure is stemming from the continuing slide in the price of Enron (E= NE) shares and the mounting financial problems at the Houston energy-tradin= g company, the nation's biggest marketer of electricity and natural gas. Du= ring the past month, Enron has taken a $1 billion write-off of assets, revi= sed downward the earnings of the past several years and taken a $1.2 billio= n reduction in shareholder equity. The problems have been due largely to dealings Enron had with private partn= erships, run by some of its own executives, under investigation by the Secu= rities and Exchange Commission. In an SEC filing Monday, Enron disclosed hu= ndreds of millions of potential additional write-offs as well as the possib= ility that its weakening financial condition could force it to repay more t= han $2 billion in loans by the end of the year.=20 As of 4 p.m. Wednesday in New York Stock Exchange composite trading, Enron = shares fell $1.98, or 28%, to $5.01 each after having dropped 23% Tuesday. = In excess of 115 million shares traded Wednesday, more than four times the = volume of any other Big Board stock. Enron's bonds also again traded sharpl= y lower, market observers said.=20 The turmoil spilled over to Dynegy's stock, which also was among the most a= ctively traded on the New York Stock Exchange. As of 4 p.m. Wednesday, Dyne= gy (DYN) shares fell $1.94 to $39.76 each.=20 On Wednesday, Dynegy issued a statement in which Chairman and Chief Executi= ve Chuck Watson said his company was working "to accelerate the regulatory = approvals required to complete the merger in accordance with the previously= announced agreement" though it continued to perform "due diligence" on Enr= on.=20 Under the merger agreement, Dynegy has opportunities to renegotiate or walk= away from the deal if Enron's financial and legal problems become severe e= nough. However, some observers said it can be difficult to invoke these so-= called material adverse change clauses. They point to a decision earlier th= is year by a Delaware Chancery Court judge who forced Tyson Foods Inc. to c= omplete a planned purchase of IBP Inc. even though Tyson, a Springdale, Ark= ., food-products company, had wanted to cancel the transaction because of a= drop in IBP's earnings and accounting problems at an IBP unit.=20 Dynegy officials didn't return calls seeking comment. To complete the deal,= two-thirds of Dynegy shareholders and a majority of Enron shareholders wou= ld have to give their approval. No dates for those votes have been set.=20 One person familiar with the merger plans said the SEC filing Monday by Enr= on contained information Dynegy hadn't known about. Dynegy representatives = planned to work through the weekend evaluating the importance of this new i= nformation as part of the company's due diligence, this person said. It cou= ldn't be determined what the new information was.=20 The merger agreement, announced Nov. 9, calls for Dynegy to exchange 0.2685= share for each of Enron's roughly 850 million fully diluted shares, giving= the purchase a value of about $9 billion at Dynegy's current stock price. = However, from a price standpoint, the deal is appearing less attractive to = Dynegy.=20 On the day of the merger announcement, Enron shares were trading at about $= 8.63 each, or about 83% of the purchase price under the exchange ratio. As = of Wednesday, Enron's market price was only about 47% of the merger-formula= price. Such a sharp deterioration is unusual following a merger announceme= nt, when the stock price of the company being acquired generally begins tra= ding relatively close to the offering price.=20 Sentiment among Wall Street analysts also is turning against the merger. In= itially, many analysts lauded the merger as a move that would rescue Enron = and provide a major boost to Houston-based Dynegy. Dynegy and Enron officia= ls have predicted that the merger, supposed to be completed late next year,= would significantly and immediately increase Dynegy's earnings.=20 Now analysts are challenging that assumption. Ron Barone, managing director= at UBS Warburg LLC, said he believes that because of Enron's financial pro= blems, a combined company would actually have lower earnings next year than= Dynegy would have by itself. Mr. Barone said he thinks a "likely scenario"= is that the merger formula will be renegotiated sharply down to about 0.15= Dynegy share for each Enron share.=20 Copyright (c) 2001 Dow Jones & Company, Inc.=20 All Rights Reserved. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business; Financial Desk Employees' Lawuit Says Enron Hurt Retirement Funds Courts: The suit claims = the energy firm urged workers to invest in company stock just before it plu= nged. From Associated Press 11/23/2001 Los Angeles Times Home Edition C-2 Copyright 2001 / The Times Mirror Company HOUSTON -- Two Enron Corp. workers are suing the company, claiming it endan= gered their retirement funds.=20 The lawsuit, filed in federal court in Houston under the Employee Retiremen= t Income Security Act, asserts that Enron encouraged the employees to inves= t more heavily in company stock just before the stock tanked. The lawsuit w= as filed by Portland, Ore., utility lineman Roy Rinard and co-worker Steve = Lacey. Enron shares have plunged more than 90% over the last several months since = the departure of the company's chief executive and an accounting controvers= y that prompted the firm to restate its earnings since 1997, eliminating mo= re than $580 million of reported income.=20 Steve Berman, managing partner for the law firm of Hagens Berman in Seattle= , said Enron touted the value of its shares and encouraged employees to put= their entire portfolio into Enron stock.=20 Enron officials didn't emphasize the risk and instead painted the situation= as positive, especially when the company's stock began to slide, said Berm= an, who is hoping to get the suit certified as a class action.=20 Berman wants to prove that the company's 401(k) plan executives failed to a= ct responsibly when they knew about serious business problems. He's also ho= ping to break new legal ground with his case.=20 The lawsuit is patterned after a case against Lucent Technologies in which = Lucent employees sued their employer this summer for matching their 401(k) = contributions with company stock that tanked. That case is still in litigat= ion.=20 Earlier this year, Rinard, 54, had $472,000 in his Enron 401(k) plan, which= had been growing for 21 years.=20 Today, his plan is worth about $40,000. Enron gives its employees their 401= (k) match in company stock.=20 In January, Enron was trading for $84.87. Wednesday it closed at $5.01 a sh= are on the New York Stock Exchange.=20 The problem was compounded when many employees, including Rinard, saw Enron= 's stock doing so well that they decided to put their entire account into E= nron stock.=20 Enron executives had talked about how the stock price was poised to climb a= bove $100 a share, Rinard told the Houston Chronicle.=20 In addition, Enron employees were not allowed to make trades in the 401(k) = plan for about a month, starting Oct. 17. That was the day after Enron surp= rised the market with the news it was taking a $1.01-billion after-tax thir= d-quarter charge to get out of bad investments.=20 Enron officials, who could not be reached, have said they had planned the l= ockdown for several months because the company was changing plan administra= tors. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business Portland utility's fate tied to Enron's future Nigel Hunt Reuters 11/23/2001 The Seattle Times Fourth C2 (Copyright 2001) LOS ANGELES -- Oregon's largest utility, Portland General Electric, faces a= n uncertain future as its parent Enron fights for its life amid a deepening= financial crisis, industry experts said Wednesday.=20 Another Oregon utility, Northwest Natural Gas, is due to file next week wit= h state regulators for approval to take over Portland General. Those same r= egulators could soon be faced with a similar application from Dynegy as par= t of a still-pending deal to acquire cash-strapped Enron. If Enron were to file for bankruptcy before Portland General has been sold,= its future could be thrown into the hands of a Texas bankruptcy court, exp= erts said.=20 Northwest Natural Gas agreed Oct. 8 to acquire Portland General for around = $1.8 billion, plus about $1.1 billion in assumed debt and preferred stock. = A month later, Enron announced it had agreed to be acquired by Houston-base= d Dynegy.=20 "We've been watching this from afar to see how it could impact that sale (P= ortland General's acquisition by Northwest Natural Gas)," said Roy Hemmingw= ay, chairman of the Oregon Public Utility Commission.=20 "We have authority if that sale doesn't go through to rule on whether Dyneg= y can take over Enron," he said.=20 Ratings agency Fitch last week cut Portland General's debt ratings due to "= uncertainty at its parent Enron." Wednesday, the same agency said a bankrup= tcy filing by Enron was "highly possible" if the proposed rescue by Dynegy = collapses.=20 "We haven't seen any credit problems so far, and Portland General isn't in = the market (buying power for its customers) right now in a big way," Hemmin= gway said.=20 However, he noted that, "If they really were unable to conduct their busine= ss because they were not creditworthy we would have to use whatever instrum= ents are available" to make sure service to customers is maintained. Earlie= r this year, California was forced to take over buying power for the PG&E u= nit of Pacific Gas & Electric and Edison International subsidiary Southern = California Edison after the two utilities saw their credit ratings cut to j= unk status.=20 Federal regulators have insisted the sellers of wholesale power have the ri= ght to sell to a creditworthy buyer.=20 California's largest utility, Pacific Gas & Electric, chose to file for ban= kruptcy because of its mounting debt. In a parallel, consumer advocates fea= r the fate of the biggest utility in neighboring Oregon could end up in the= hands of a bankruptcy judge.=20 Hemmingway said the Oregon Public Utility Commission recently had granted P= ortland General a rate increase and the utility has "plenty of cash flow cu= rrently to handle its obligations."=20 "This is nothing like California where that was not the case," he said.=20 Northwest Natural Gas, which is also based in Portland, has set a target of= filing next Wednesday with the Oregon commission to take over the utility,= spokesman Steve Sechrist said.=20 "We have no concerns whatsoever at this point. The deal is moving forward a= nd there is no reason we can see why it should not" he said, noting the del= ay to the filing was the result of the complexities of the acquisition.=20 Jason Eisdorfer, a lawyer for the Citizens' Utility Board of Oregon, said m= ajor questions would be raised if Enron went under before the deal were com= pleted.=20 "Would the (bankruptcy) judge let the terms of the agreement go forward. I = don't know. There is a risk that Portland General will become an asset to b= e disposed of under bankruptcy," Eisdorfer said.=20 Copyright [copyright] Seattle Times Company, All Rights Reserved. You must = get permission before you reproduce any part of this material. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron Shares and Bonds Fall on Concern About Takeover (Update5) 2001-11-23 15:55 (New York) Enron Shares and Bonds Fall on Concern About Takeover (Update5) (Updates with Dynegy comment in fifth paragraph.) Houston, Nov. 23 (Bloomberg) -- Enron Corp. shares and bonds fell for a third day on concern the company's weakened financial condition and plunging stock price may lead Dynegy Inc. to try to cancel or rework a takeover of the biggest energy trader. Shares of Enron, the most-active U.S. stock, dropped 30 cents, or 6 percent, to $4.71. They fell 45 percent Tuesday and Wednesday after Enron said it may have to pay more than $9 billion in debt due by 2003. Enron 6.4 percent bonds due in July 2006 were bid at 55 cents on the dollar, down from 62 cents on Wednesday, traders said. Enron shares are trading at less than half the value of Dynegy's offer, which shows investors are questioning whether the buyout will be completed on the terms agreed to two weeks ago. Enron's financial woes may prove to be a drag on Dynegy's earnings next year if the transaction is completed, analysts said. ``There are continued doubts about the deal,'' said UBS Warburg analyst Ronald Barone, who rates Dynegy a ``strong buy'' and doesn't own shares in either company. ``Enron's earnings aren't what they used to be because they've lost trading business. Given that, Dynegy has an opportunity to renegotiate the price.'' Dynegy spokesman John Sousa said the company ``remains optimistic for the potential of the merger.'' Enron agreed Nov. 9 to the takeover, now valued at about $23 billion in stock and assumed debt, after a financial crisis threatened it with bankruptcy. On Wednesday, Enron got a three-week reprieve from lenders on a $690 million note due next week, giving the company more time to restructure its finances. Dynegy Chief Executive Officer Chuck Watson said he was ``encouraged'' by the commitment to extend the note payment, as well as the closing of a $450 million credit facility, and that Dynegy remained committed to the purchase. More than 40 million Enron shares changed hands today, almost twice their three-month daily average, in a session shortened because of the Thanksgiving holiday. Enron was the most-active U.S. stock on Wednesday, with 116 million shares traded. Dynegy shares rose 64 cents to $40.40 today. Less Than $2 Billion In a Securities & Exchange Commission filing Monday, Enron said it has less than $2 billion in cash and credit lines left. If the company's cash reserves run too low, Enron is in danger of seeing its credit rating cut below investment grade. That would trigger $3.9 billion in debt repayments for two affiliated partnerships. Enron's bankers have met with unidentified investors, including leveraged buyout firms and two industrial companies, in a bid to shore up the energy trader's finances with an injection of as much as $2 billion, the New York Times reported yesterday, citing unidentified executives close to the companies. Enron spokeswoman Karen Denne said the company is seeking $500 million to $1 billion. Enron needs to raise $1 billion to $1.5 billion in cash within the next 45 days, said Sean Egan, managing director of Egan-Jones Rating Co. ``Their trading operation has burned through cash faster than the market had expected,'' Egan said. Trading Business Traders including Mirant Corp. and Aquila Inc. have said they shifted transactions away from Enron after its plunging stock price prompted concerns about creditworthiness. Enron has said fourth-quarter earnings would be reduced partly by a drop in its energy-trading business. Watson said after the Enron buyout was announced he expected it to increase 2002 earnings by 35 percent. Analysts said that can't happen unless Enron recovers lost trading business. Several have cut their 2002 estimates for Enron. The average estimate of analysts polled by Thomson Financial/First Call for next year is now $1.68 a share, down from $2.14 a month ago. Dynegy can cancel or renegotiate if Enron can't meet debt payments, its trading market collapses, banks demand more collateral or raise the interest rate for loans, Enron's credit rating is cut to junk, the SEC cites Enron for securities fraud, or if Enron's legal liabilities including shareholder suits exceed $3.5 billion, Egan said. Will Dynegy Renegotiate? Dynegy officials were considering whether to try and renegotiate terms of its agreement with Enron, according to the New York Times report. Dynegy and Enron are both based in Houston. ``Dynegy investors would like to see the company negotiate a lower price for Enron,'' said Credit Lyonnais securities analyst Gordon Howald, who rates Dynegy ``buy'' and owns no shares. Under the Nov. 9 terms, Enron investors would receive 0.2685 Dynegy share for each share held. At today's closing price, that values Enron stock at $10.85. A year ago, Enron traded at almost $80. Investors worry that a cancellation of the merger would push Enron into bankruptcy. ``The market is saying there seems to be no obvious Plan B for Enron and that is what has investors concerned,'' said Eric Bergson, who helps manage $9 billion of fixed-income assets at Northern Trust Co. in Chicago. ``The lower bond prices go, what the market is saying is that there's less chance of this deal going through.'' --Jim Polson in Princeton, (609) 750-4658 or [email protected] KKR, Blackstone Are Among Likely Enron Investors, Analyst Says 2001-11-23 16:20 (New York) KKR, Blackstone Are Among Likely Enron Investors, Analyst Says Houston, Nov. 23 (Bloomberg) -- Kohlberg, Kravis Roberts & Co., the Blackstone Group and the Carlyle Group are among the likely candidates to be approached by Enron Corp. for a private equity investment to shore up the company's balance sheet, said industry analyst David Snow of PrivateEquityCentral.Net. The firms have cash on hand and have invested in energy companies in the past. An investment in Enron may look attractive now that its shares have plunged by 94 percent this year. ``Many of the larger, more traditional buyout firms would find this deal attractive,'' said Snow. ``This is a company that has real assets that is down in the dumps and has need of capital when capital is scarce.'' Enron's bankers met recently with leveraged buyout firms and two industrial companies to seek an investment, the New York Times reported, citing executives close to the companies. Enron's stock fell for a fifth day in six on concern the company's weakened financial condition may lead Dynegy Inc. to try to cancel or rework its planned purchase of the rival Houston company. Investors may inject as much as $2 billion under arrangements that would protect them from further declines in Enron's stock, the Times said. The new investments would be in Enron's Transwestern Pipeline, which connects natural-gas fields in Texas to the California market, the newspaper said. J.P. Morgan Chase & Co. and Citigroup Inc. agreed to terms that give each of them a $250 million equity stake as part of a transaction to be completed Monday, officials told the newspaper. Buyout firms sometimes make collective bids, pooling their money and distributing the risk. The firms also like to invest in industries that are out of favor with public investors and to do so in partnership with corporate investors, like Dynegy, said Snow. ``You need to know enough about the (energy) business to know whether it's a good deal, and then you need to be confident in the Dynegy team,'' he said. KKR KKR, the second-biggest private equity firm with $24 billion in assets, declined comment on Enron through spokeswoman Molly Morse of Kekst & Co. The New York-based firm invested more than $1.3 billion in DPL Inc., a utility in Dayton, Ohio, and will receive $550 million of that back from the company after DPL sold $700 million of bonds in August. ``KKR very much gets involved in deals where there's a corporate partner and they don't have a majority stake,'' Snow said. ``They would possibly hold it for years, because they like slow exits.'' KKR is also a possible candidate because it recently raised a new $5 billion buyout fund. Any LBO firm would need assurance about how it will get its money back on an Enron investment, said Snow. ``The thing they have to be cautious about is the exit,'' he said. ``If there's a chance Dynegy would agree to buy out (the LBO firms') stake over time, that would give some confidence. But if the only exit is the public market, that's a little bit dicier.'' Any private investment also must be large enough to make a meaningful difference: Enron's market value is $3.7 billion and Dynegy has proposed paying $23 billion in stock and assumption of debt. That means the private equity portion would have to approach $1 billion or more. The 20 largest private equity firms have assets of more than $5 billion under management each, according to Asset Alternatives, a Wellesley, Massachusetts industry research firm. Still, many of those firms don't have enough free capital to undertake an investment of $500 million or more. An announcement of an investment may come soon, analysts say. Energy trading firms such as Mirant Corp. and Aquila Inc. are doing fewer trades with Enron because of concern that the company won't be able to finance its business. Enron shares have fallen by almost half in the past three sessions. ``They're going to need this investment within 30 to 45 days,'' said Sean Egan of Egan-Jones Ratings Co. ``They're spiraling downward and they're going to need some more beyond the $1.5 billion contributed by'' ChevronTexaco Corp., which owns 26 percent of Dynegy. Other LBOs Here's a rundown of the other most likely private equity partners for Enron: --The Carlyle Group could invest through a $1 billion energy fund it's raising, as well as its general U.S. buyout fund, said Snow. Carlyle's vice president for corporate communications, Chris Ullman, declined to comment. --Blackstone, which has a history of investing alongside other corporate partners, recently closed on a $4 billion buyout fund. Blackstone spokesman John Ford declined to comment on whether Enron had approached the firm. --Hicks, Muse, Tate & Furst, which is based in Texas like Dynegy and Enron. Hicks Muse counts Triton Energy Ltd., an energy exploration company, among its best investments. The firm recently raised about $1.5 billion for new investments, about one-third of what it had hoped to raise, and has said it will focus on ``back- to-basics'' investments in food, manufacturing and media. Mark Semer, a spokesman for Hicks Muse who also works for Kekst, declined comment on Enron. Spokesmen for two other firms, Warburg Pincus & Co. and Credit Suisse First Boston's private equity arm, didn't return calls seeking comment. --Randy Whitestone in the New York newsroom (212) 940-1805=20 Microsoft MSN Fast Web Access Expansion Slowed by Enron Suit 2001-11-23 11:59 (New York) Microsoft MSN Fast Web Access Expansion Slowed by Enron Suit Redmond, Washington Nov. 23 (Bloomberg) -- Microsoft Corp.'s plans to expand its MSN high-speed Internet service have been delayed by a lawsuit from Enron Corp., which could cost the company customers during the holiday season, analysts said. MSN had planned to have fast Internet access over telephone lines available, with help from energy trader Enron, in 45 markets starting Oct. 25. Instead, the service is now on sale in about 30 markets, said MSN Product Manager Lisa Gurry. The latest delay follows a string of apparent bad luck that has delayed the rollout of Microsoft's fast Internet access service over the last year. The holidays are typically a popular time for customers to buy so-called broadband access, often along with new personal computers purchased or received as gifts. ``They have a track record of picking broadband partners that don't quite work out,'' said Joe Laszlo, senior analyst at market researcher Jupiter Media Metrix Inc. ``It definitely hurts them with customers who want broadband right now.'' Subscribers to fast Internet access services are expected to grow fourfold by 2006, according to estimates by Jupiter Media Metrix, while sales of slower Internet access plans decline. Fast Internet service over phone lines uses digital subscriber line, or DSL, technology. On Track Gurry said Redmond, Washington-based Microsoft is still on track to have fast access for sale by the end of March to 90 percent of the 45 million to 50 million households that have DSL available in their neighborhoods. ``There is very little growth left in the dial-up access space for Microsoft or anybody, which leaves them with broadband as the only potential growth area for the MSN access business,'' said Youssef Squali, an analyst at FAC/Equities, who rates Microsoft Internet competitor AOL Time Warner Inc. a ``buy.'' Microsoft also wants to deliver consumer services like music and video and software updates, which require fast Internet access for smooth downloads. The company originally began a service with NorthPoint Communications Group Inc., a now-bankrupt provider of fast Web access. Microsoft has also had difficulty finding partners among cable companies who use their networks for high-speed service. Now Houston-based Enron, which agreed in June to provide the backbone for a nationwide expansion of MSN's service, is suing. Enron claimed in its lawsuit that it isn't required to deliver broadband services if Microsoft hasn't first provided a billing and ordering system that the biggest software company agreed to build. Enron, which is being acquired by rival Dynegy Inc., recently disclosed debts of $9.15 billion due by 2003 and restated earnings for four years. Slower Expansion MSN has been selling high-speed access in 14 states under partnership with Qwest Communications International Inc. for the last few months. MSN has begun the planned service expansion outside of those states by working with Enron competitors that MSN Marketing Director Bob Visse declined to name. The company is also talking to Enron, he said. Enron didn't return calls for comment. Because of the Enron suit the expansion is moving slower than expected, Visse said. Since Oct. 25, MSN has added service in Los Angeles, San Francisco, San Diego and Sacramento, California, and Houston, Dallas, San Antonio and Austin, Texas, giving Microsoft a total of about 30 markets rather than 45. Plans to expand marketing are also on hold, Visse said. ``It is very unfortunate that we are in the position we are in,'' said Microsoft Chief Executive Steve Ballmer. Top U.S. Internet service provider America Online, owned by AOL Time Warner Inc., has also been slow to get into the high- speed market, analysts said. That doesn't mean Microsoft is in the clear. Laszlo said both MSN and AOL might pay for their sluggishness with tougher competition from third-place EarthLink Inc. and from cable and telephone companies that have more experience selling high-speed Internet access. America Online has more than 31 million subscribers to MSN's 7 million. EarthLink Inc. has 4.77 million subscribers. Laszlo doesn't think MSN or America Online can build the kind of lead in the high-speed market that America Online has in the slower dial- up access market. `Not a Permanent Blow' Not that anyone need worry about Microsoft. MSN will be able to expand its fast Internet access business even with the delays, Laszlo said. ``They are already late in the broadband market so this means they get a little later,'' he said. ``But broadband will continue to grow over the next few years and this is definitely not a permanent blow.'' Analysts also say Microsoft still needs to find a cable partner that will let MSN use its network to sell fast access over cable lines. Cable is more popular than DSL with customers looking for fast Web service. The five largest cable providers control 51 percent of the U.S. high-speed Internet market. The five largest sellers of access via phone lines and DSL technology account for about 33 percent, according to market researcher ARS Inc. Microsoft MSN Vice President Yusuf Mehdi said last month the company may be interested in an investment in AT&T Corp.'s cable- television unit, which AT&T is considering selling. Ballmer declined to comment on Microsoft's plans. --Dina Bass in Seattle (206) 521-5981, or [email protected] Metropolitan Desk; Section A Corrections 11/22/2001 The New York Times Page 2, Column 4 c. 2001 New York Times Company Because of an editing error, an article in World Business yesterday about t= he Enron Corporation's prospects for selling its interest in the Dabhol Pow= er project in India misstated the size of its stake. It is 65 percent, not = 70. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09	[email protected]
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(NYSE:NWN) on Monday said it agreed to buy Enron = Corp.'s (NYSE:ENE) Portland General Electric for $1.8 billion, in a deal th= at combines Oregon's largest natural gas utility with the state's largest e= lectric utility. AT&T Wireless to buy rest of TeleCorp for $2.4 bln in sto= ck AT&T Wireless Services Inc. (NYSE:AWE), the No. 3 U.S. wireless compan= y, said on Monday it will buy the 77 percent of TeleCorp PCS (NASDAQ:TLCP) = it does not already own for $2.4 billion in stock, giving it full control o= f its largest affiliate. Clear Channel to buy Ackerley in $495 mln deal T= op U.S. radio broadcaster Clear Channel Communications Inc. (NYSE:CCU), whi= ch is boosting its media presence in key cities, on Monday said it has agre= ed to acquire outdoor media and broadcasting company Ackerley Group Inc. (N= YSE:AK) in a stock deal worth about $495 million. GE Power buys U.K.'s Bal= s Electrical General Electric Co. 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Expresses = Concern Over Tragedy, Resolves To Participate in Strengthening Procedures i= n United States PR Newswire: 09/17/2001 13:58 ET UPDATE 2-Investigators sw= arm Boston airport after hijackings Reuters: 09/11/2001 21:33 ET - - - - -= MORE [IMAGE] LVLT News Moody's may cut 17 telecoms, billions in debt Re= uters: 10/03/2001 19:24 ET Siebel still leads, but no longer alone in CRM r= ace Reuters: 10/02/2001 16:57 ET LEVEL 3 COMMUNICATIONS INC FILES FORM SC = TO-I/A (US:LVLT) EDGAR Online: 10/02/2001 14:14 ET - - - - - MORE [IMAGE]= [IMAGE]=09 =09 [IMAGE] [IMAGE]=09You are subscribed to this newsletter as [email protected] U N S= U B S C R I B E The Daily Quote is the free daily newsletter for Lycos Fin= ance Members. To UNSUBSCRIBE -------------------------------- To stop rece= iving this newsletter, send an e-mail to: [email protected] . = Please include only your email address in the subject line of the email. 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arnold-j/deleted_items/750.	subject: Enron Mentions - 11/26/01 content: Dynegy Seems To Have Options In Enron Deal The Wall Street Journal, 11/26/01 Volatility Fell Slightly in Light Holiday Trading As Enron Calls, Lilly Put= s Attracted Interest The Wall Street Journal, 11/26/01 The Other Instant Powerhouse in Energy Trading BusinessWeek, 11/26/01 ALL EYES ON THE ENRON PRIZE If the deal holds, Dynegy will walk away with s= ome juicy assets BusinessWeek, 11/26/01 CONFUSED ABOUT EARNINGS? You're not alone. Here's what companies should do-= -and what investors need to know BusinessWeek, 11/26/01 END THE NUMBERS GAME BusinessWeek, 11/26/01 FREE AND CLEAR OF ENRON'S WOES BusinessWeek, 11/26/01 COMPANIES & FINANCE INTERNATIONAL - Enron still optimistic of averting fina= ncial meltdown. Financial Times, 11/26/01 Schwab Chief's Main Theme: Diversification The Wall Street Journal, 11/26/01 Enron Pursuing a Cash Infusion Energy: Company is seeking as much as $1bill= ion as it tries to shore up its endangered acquisition by Dynegy. Los Angeles Times, 11/26/01 Dynegy Optimistic That Enron Merger Will Succeed - FT Dow Jones International News, 11/26/01 Dynegy Purchase Prompts Antitrust Concerns, L.A. Times Says Bloomberg, 11/26/01 Enron hopes for infusion of capital: Seeks US$500M as talks of Dynegy merge= r continue National Post, 11/26/01 India's Aditya Birla Not Eyeing Enron's Stake In Dabhol Dow Jones International News, 11/26/01 The Enron scandal Business Standard, 11/26/01 India's Mehta Comments on Birla Group Offer to Buy Enron Stake Bloomberg, 11/26/01 Dynegy Seems To Have Options In Enron Deal By Rebecca Smith and Robin Sidel Staff Reporters of The Wall Street Journal 11/26/2001 The Wall Street Journal A3 (Copyright (c) 2001, Dow Jones & Company, Inc.) With the stock market telling Dynegy Inc. that energy trader Enron Corp. is= n't worth even half what Dynegy has offered to pay, analysts and investors = are paying close attention to the circumstances under which Dynegy could ba= rgain a lower price or even walk away from the merger deal.=20 Earlier this month, Houston-based Dynegy offered to buy its far larger cros= s-town rival in an all-stock deal that currently values Enron shares at $10= .85 apiece, or a total of about $9.2 billion. But in the wake of post-agree= ment disclosures by Enron that its future earnings are likely to be substan= tially less than expected, the company's stock has been hammered. In 1 p.m.= trading on the New York Stock Exchange on Friday, Enron shares fell 30 cen= ts to $4.71. The stock is down 94% so far this year and far short of the pe= r-share takeover price. Dynegy shares rose 64 cents to $40.40. Although Dynegy and Enron both say they are going ahead with the deal under= the terms negotiated, Dynegy does appear to have other options. The agreem= ent with Enron contains a broad "material adverse change" clause as well as= some specific trigger points that could be invoked.=20 Dynegy officials performed "due diligence" throughout the holiday weekend, = seeking to learn more about the intimate workings of Enron, which has suffe= red a series of damaging blows. Since mid-October, Enron has disclosed that= some of its officers participated in personally enriching deals that moved= assets off Enron's balance sheet, for a time, to several private partnersh= ips. Those deals are now the subject of a Securities and Exchange Commissio= n investigation. Past treatment of some of those deals has been termed an "= accounting error" by Enron and it twice has rejiggered its earnings since O= ct. 16. At one point, Enron restated downwards nearly five years of earning= s.=20 An Enron spokeswoman said the company was proceeding in the belief that the= deal would be completed as agreed. Dynegy spokesman John Sousa said the tw= o sides are forging ahead although he acknowledged that the walk-away provi= sions "are broad, by design, to ensure adequate protection for Dynegy share= holders." Shareholders of both firms must still vote on the merger agreemen= t.=20 Clauses related to a "material adverse change," also known as a "material a= dverse effect," have been the focus of much attention among merger professi= onals this year, due, in part, to the stock market's fluctuations and the e= conomic slowdown that have caused some buyers to reconsider planned acquisi= tions.=20 But such clauses rarely are invoked by a buyer or seller because they are c= onsidered extremely difficult to prove. Both parties typically are reluctan= t to lay out specific terms for canceling a deal, much the way a bride and = groom often balk at negotiating a prenuptial agreement since it appears to = envisage a breakup of the marriage even before it begins.=20 Furthermore, a key court case earlier this year affirmed widespread views t= hat a buyer can't easily walk away from a merger. In that case, meat-proces= sing concern Tyson Foods Inc. sought to cancel a planned acquisition of mea= t-packer IBP Inc. due to a drop in IBP's earnings and a write-down of an IB= P subsidiary. But a Delaware judge refused to let Tyson cancel the pact, sa= ying Tyson had been aware of the cyclical nature of IBP's business and the = accounting issue.=20 In a lengthy June 18 opinion, Delaware Chancery Court Vice Chancellor Leo E= . Strine Jr. wrote that " . . . the important thing is whether the company = has suffered a Material Adverse Effect in its business or results of operat= ions that is consequential to the company's earnings power over a commercia= lly reasonable period, which one would think would be measured in years rat= her than months."=20 That interpretation has created ripples in the deal-making community, promp= ting some transactions to include more details about circumstances under wh= ich deals can be terminated. Since the Sept. 11 attacks, for example, a han= dful of merger agreements have specified that future terrorist activity wou= ld qualify as a "material adverse change," or MAC.=20 A key issue for any firm alleging there has been a material adverse change = is "whether the new facts go to the guts of the strategic opportunity or is= it just a hiccup," says Meredith Brown, co-chairman of the mergers and acq= uisitions group at law firm Debevoise & Plimpton in New York. He adds that = a court "may be skeptical" if Dynegy claimed that Enron's post-merger agree= ment disclosures were a surprise.=20 The Enron-Dynegy merger agreement includes several triggers permitting eith= er side to seek termination. Enron can quit the deal if it receives a subst= antially better offer, although it is prohibited from soliciting one. In su= ch a case, it could be required to pay a $350 million "topper fee" to Dyneg= y and its co-investor, ChevronTexaco Inc.=20 Dynegy can alter the deal if Enron faces "pending or threatened" litigation= liabilities that are "reasonably likely" to cost Enron $2 billion. If thos= e liabilities hit $3.5 billion "an Enron material event will be deemed to h= ave occurred," presumably allowing Dynegy to call the whole thing off. In s= ome situations, Dynegy would be liable for a $350 million fee, as well.=20 Karen Denne, the Enron spokeswoman, said her firm doesn't believe that loss= es arising from the normal course of business would qualify as a material e= vent. The liability must result from litigation. Currently, the company fac= es more than a dozen shareholder suits alleging breach of fiduciary duty by= officers and directors, issuing false and misleading reports and other off= enses.=20 Deal makers who aren't involved in the combination say the steep drop in En= ron's stock price since the merger agreement was signed wouldn't by itself = give Dynegy the ability to cancel the pact or force Enron to renegotiate it= s terms. Instead, they say, Dynegy would likely have to prove that Enron's = worsening financial condition was an unanticipated event, which could be di= fficult in light of the company's highly publicized problems and Dynegy's f= requent statement that it clearly understands Enron's businesses. Still, th= ere is another standard clause in the merger document that would allow Dyne= gy to terminate the deal if "any representation or warranty of Enron shall = have become untrue."=20 Other energy companies have abandoned deals following a widening gap in sto= ck prices that changed an acquisition premium. Western Resources Inc. of To= peka, Kansas last week sued Public Service Co. of New Mexico seeking hundre= ds of millions of dollars in damages after it failed to buy Western's utili= ties. The lawsuit accused Public Service of breaching its "duty of good fai= th and fair dealing" and said the New Mexico company tried to "sabotage" th= e deal as the two companies' stock prices diverged. Public Service denies t= he accusations. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Options Report Volatility Fell Slightly in Light Holiday Trading As Enron Calls, Lilly Put= s Attracted Interest By Cheryl Winokur Munk Dow Jones Newswires 11/26/2001 The Wall Street Journal B8 (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -- The options market dozed, as many participants stayed home to r= ecover from too much turkey and football.=20 The Chicago Board Options Exchange's market volatility index, or VIX, which= measures certain Standard & Poor's 100 Index option prices to gauge invest= or sentiment, remained in a tight range during the abbreviated trading sess= ion the day after Thanksgiving. It fell 0.53 to 24.79. VIX typically ranges between 20 and 30. A rise indicates traders and money = managers are becoming anxious about the stock market; a fall shows investor= optimism.=20 Volatility has been dropping from post-Sept. 11 levels in recent weeks amid= victories over the Taliban in Afghanistan and interest-rate cuts by the Fe= deral Reserve and other central banks. VIX ranged between 30 and 40 for sev= eral weeks following the attacks.=20 Volatility is likely to remain low, said Mika Toikka, head of options strat= egy at Credit Suisse First Boston. "Typically, going into the Thanksgiving = and December holidays, we tend to experience a seasonal drift lower in impl= ied volatility. We would expect the same this year, especially in markets o= utside the U.S. where volatility is still lingering at high levels," Mr. To= ikka wrote in a recent research note.=20 The CBOE's Nasdaq Volatility index, or VXN, a sentiment barometer for the t= echnology sector, fell 1.86 to 50.82 while the American Stock Exchange's Na= sdaq volatility index, or QQV, dropped 1.03 to 42.74.=20 Elsewhere in the options market:=20 Calls in Enron Corp., the embattled Houston energy and trading company, con= tinued to trade briskly, with one investor buying 10,000 January 5 calls an= d simultaneously selling 12,250 January 10 calls.=20 More than 14,800 of the January 5 contracts traded, compared with open inte= rest of 3,640, as shares fell 33 cents, or 6.6%, to $4.68. These calls cost= $1.40 on the American Stock Exchange where most of the volume was traded.= =20 More than 15,000 of the January 10 contracts traded, compared with open int= erest of 30,674. These out-of-the-money calls cost 30 cents on the Amex.=20 Eli Lilly & Co.'s December 80 out-of-the-money puts also were popular Frida= y, as shares fell 91 cents, or 1.1%, to $82.42. Morgan Stanley cut its rati= ng on the company to neutral from outperform, saying the stock has become t= oo expensive even with Food and Drug Administration approval of its potenti= al blockbuster drug Xigris, which treats septic infections. More than 3,000= of these puts traded, compared with open interest of 6,427. They cost $1.2= 5 on the CBOE, which saw much of the volume. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 The Corporation: Acquisitions The Other Instant Powerhouse in Energy Trading By Louise Lee in San Mateo, Calif. 11/26/2001 BusinessWeek 96 (Copyright 2001 McGraw-Hill, Inc.) It's not easy being No. 4. Despite a $35 billion merger completed in Octobe= r, ChevronTexaco Corp. is still not one of the oil superpowers. Nor, at mor= e than $90 billion a year in revenues, is it a scrappy little guy. So Chair= man David J. O'Reilly has been searching for a strategy beyond just drillin= g for more oil and gas.=20 Now, he may have something: a big stake in the No. 1 energy-trading company= . Chevron Corp. has owned 26% of Dynegy Inc. since 1996, and with Dynegy's = planned acquisition of Enron Corp., the top energy trader, ChevronTexaco is= making the oil industry's most aggressive push yet into this fast-growing = business. It plans to eventually pump $2.5 billion into the combined Dynegy= and Enron to maintain its 26% stake, and it might raise that share. So, wh= ile ChevronTexaco's much bigger rivals run small in-house trading operation= s, energy trading may soon account for more than 10% of ChevronTexaco's ear= nings. ``Chevron is now positioned to be a leader in the business,'' says a= nalyst Arjun Murti at Goldman, Sachs & Co. The deal would certainly dovetail with ChevronTexaco's strategy of becoming= a more integrated energy company, with a hand in everything from pumping o= il at the wellhead to trading natural-gas futures. By acquiring Texaco, Che= vron picked up, for instance, a big refining-and-marketing business --which= should balance out the bad times in oil and gas production, says Eugene No= wak, an analyst at ABN Amro. ``When crude-oil prices are down, they'll have= margin improvements on refining and marketing,'' he says. O'Reilly and oth= er ChevronTexaco executives declined to comment.=20 Until now, Dynegy wasn't a big deal for Chevron. Chevron purchased the stak= e for $700 million when Dynegy was still called NGC Corp., and it filled th= ree of the 14 board seats--positions it will keep. Since then, Chevron has = sold nearly all its domestic natural-gas production to Dynegy. The stake ha= s been a good investment: it is now worth $3 billion, ChevronTexaco says.= =20 Sitting on $2.9 billion in cash as of the end of the second quarter, Chevro= nTexaco can well afford the Dynegy deal, analysts say. And they expect O'Re= illy to use some of that to make more buys; the most likely target is a nat= ural-gas company. Maybe it's not so bad being No. 4. Illustration: Chart: CHEVRON'S GROWING CASH HOARD=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 The Corporation: Acquisitions ALL EYES ON THE ENRON PRIZE If the deal holds, Dynegy will walk away with s= ome juicy assets By Stephanie Anderson Forest, with Wendy Zellner in Dallas, and Peter Coy a= nd Emily Thornton in New York 11/26/2001 BusinessWeek 94 (Copyright 2001 McGraw-Hill, Inc.) As Houston-based Enron Corp. imploded amid a dizzying scandal over its fina= nces, few would have blamed Dynegy Inc. CEO Charles L. Watson if he had sat= back and gloated. After all, Watson had watched as his bigger, brasher cro= sstown rival sniffed at Dynegy's more cautious strategy, all the while garn= ering most of the credit for reshaping the energy-trading business.=20 Instead, Watson picked up the phone on Oct. 24 and called Enron Chairman, C= EO, and longtime acquaintance Kenneth L. Lay to ask how he could help. Lay = didn't respond immediately, but as Enron's stock continued to plunge and th= e company faced a cash squeeze, it became clear what the only realistic ans= wer could be: Bail us out. So two days later, Lay invited Watson to his River Oaks home near downtown = Houston for breakfast to discuss a deal. Over muffins and ``a bad cup of co= ffee'' the next day, Watson recalls, they sketched the outlines, and by 10 = p.m. that night, the investment bankers were called in. On Nov. 9, Dynegy a= nnounced that it would pay about $10 billion, plus the assumption of $13 bi= llion in debt, to buy Enron, which is nearly four times its size. The key t= o the deal was Dynegy's immediate $1.5 billion infusion of cash to shore up= Enron's balance sheet and save its credit rating. The money came from Dyne= gy's 26% owner, ChevronTexaco Corp.=20 Without that help, Enron--the seventh-largest U.S. company, based on its $1= 00 billion in sales last year--may well have faced bankruptcy. Watson says = that he never would have imagined such an outcome in his wildest dreams. ``= I don't think anybody foresaw the problems [at Enron],'' he says. ``It's be= en incredible to watch.''=20 Watson, 51, has to make good on what may well be his riskiest investment ye= t. If he can pull it off, the new Dynegy will have revenues of more than $2= 00 billion and $90 billion in assets, including more than 22,000 megawatts = of power-generating capacity and 25,000 miles of pipeline. It would control= an estimated 20% to 25% of the energy-trading market, up from about 6% now= .=20 That would be sweet vindication for Watson's strategy. Dynegy backs trading= operations with hard assets such as power plants, which allows the company= to guarantee a supply of electricity to a buyer. In contrast, Enron has wo= rked furiously to shed power plants and oil- and gas-generating fields, bel= ieving it could earn higher returns using its trading and technology expert= ise to tap assets owned by others in markets including steel, pulp, and pap= er. IRRESISTIBLE BARGAIN. As Enron's stock slid below $9 from its August, 2= 000, high of $90, it became a bargain that Watson couldn't pass up. It woul= d have taken years for Dynegy to build up a market-making operation to matc= h Enron's. Its risk-management systems are top-of-the-line. Enron's commerc= ial-services unit, which manages power supplies for corporate customers suc= h as Wendy's International Inc., is three or four years ahead of Dynegy's, = says Steve Bergstrom, president of Dynegy. Watson says he still plans to ge= t rid of the $8 billion worth of assets Lay had earmarked for sale, includi= ng the Portland (Ore.) General Electric plant and oil and gas assets in Ind= ia. For the $1.5 billion, though, if the deal falls through Dynegy will hav= e the right to Enron's prized Northern Natural Gas pipeline, worth an estim= ated $2.25 billion. And Dynegy can walk away if Enron's legal liabilities e= xceed $3.5 billion.=20 Watson firmly believes that Enron suffered from a crisis of confidence, not= a meltdown of its core business. Indeed, Enron's wholesale-trading operati= on earned $2.3 billion last year. Says Watson: ``We know the business. We l= ooked under the hood, and guess what? It's just as strong as we thought it = was.''=20 But the trading profits were obscured in recent weeks by Enron's accounting= tricks. The biggest danger for Watson is that there are other time bombs t= icking away. Already, the company has slashed its reported earnings since 1= 997 by $591 million, or 20% of its total, to account for controversial part= nerships involving Enron officials. The Securities & Exchange Commission is= still investigating. ``We believe it will take more than just a couple of = weeks and a long-term relationship [between Watson and Lay] to do all the n= ecessary due diligence,'' says analyst Carol Coale of Prudential Securities= Inc. Dynegy's Bergstrom counters: ``We're pretty certain that most everyth= ing of material consideration has been disclosed.'' If not? The massive ear= nings boost provides ``a high margin of error,'' he says. A WANNABE. Of cou= rse, regulators may object to the concentration of trading operations. And = Watson will have to mesh two very different cultures. Enron is known for it= s intense, even cutthroat entrepreneurial spirit. Dynegy's operations are m= ore conservative; some compare it to a fraternity. Dynegy's decision to iss= ue new stock options to some Enron employees may soothe battered egos. It s= hould help, too, that Lay decided not to take the $60 million golden parach= ute he could have received in a buyout. As it is, Lay will not have a manag= ement job with the new company.=20 Dynegy often seemed to be an Enron wannabe, following it into online tradin= g and commercial services. Still, Dynegy's 361% stock gains last year eclip= sed Enron's 87% rise, and it rankled some that Lay's execs got more credit.= ``Chuck Watson may not have been in the spotlight, but he has always been = at the forefront of this business,'' says Bruce M. Withers, who sold his Tr= ident NGL Inc. to Dynegy in 1995. Watson will get more attention next year-= -he's a 15% owner of the new Houston Texans pro football team. But with his= bold takeover of Enron, Watson has ensured that he's off the sidelines for= good. Photograph: DYNEGY'S WATSON He says Enron's core business is strong. But ot= hers worry that more accounting tricks will turn up PHOTOGRAPH BY NAJLAH FE= ANNY/CORBIS SABA Illustration: Chart: POWERING UP AT DYNEGY CHART BY LAUREL= DAUNIS-ALLEN/BW=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Cover Story CONFUSED ABOUT EARNINGS? You're not alone. Here's what companies should do-= -and what investors need to know By Nanette Byrnes and David Henry=20 With Mike McNamee in Washington 11/26/2001 BusinessWeek 76 (Copyright 2001 McGraw-Hill, Inc.) In an age when giant earnings write-offs have become commonplace, it's hard= to shock Wall Street. But on Nov. 8, Enron Corp. managed to do it. After y= ears of high-octane growth that had seen earnings surge by up to 24% a year= , the Houston-based energy company acknowledged that results for the past t= hree years were actually overstated by more than a half-billion dollars. It= was confirmation of investors' worst fears. Three weeks earlier, Enron had= announced a big drop in shareholders' equity, sparking fears that its hide= ously complex financial statements were distorting its true performance. Ma= nagement pointed to a number of factors, including a dubious decision to ex= clude the results of three partnerships from its financial statements and a= billion-dollar error several years earlier that had inflated the company's= net worth.=20 Enron may be an extreme example of a company whose performance fell far sho= rt of the glowing picture painted by management in its earnings releases, b= ut it is hardly alone. This year, Corporate America is expected to charge o= ff a record $125 billion, much of it for assets, investments, and inventory= that aren't worth as much as management thought (chart, page 79). Even if = companies don't go back and restate earnings, as Enron is doing, those char= ges cast doubt on the record-breaking earnings growth of the late '90s. Not since the 1930s has the quality of corporate earnings been such an issu= e--and so difficult for investors to determine. There's more at stake than = the fortunes of those who bought shares based on misleading numbers. If eve= n the most sophisticated financial minds can't figure out what a company ac= tually earns, that has implications far beyond Enron. U.S. financial market= s have a reputation for integrity that took decades to build. It has made t= he U.S. the gold standard for financial reporting and the preeminent place = to invest. It has also ensured ready access to capital for U.S. corporation= s. That a company such as Enron, a member of the Standard & Poor's 500-stoc= k index and one of the largest companies on the New York Stock Exchange, co= uld fall so far so fast shows how badly that gold standard has been tarnish= ed. ``The profession of auditing and accounting is, in fact, in crisis,'' s= ays Paul A. Volcker, former chairman of the Federal Reserve and now one of = the leaders of the International Accounting Standards Board.=20 Sometimes, as in the case of Enron, fuzzy numbers result from questionable = decisions in figuring net earnings. More often, though, the earnings chaos = results from a disturbing trend among companies to calculate profits in the= ir own idiosyncratic ways--and an increasing willingness among investors an= d analysts to accept those nonstandard tallies, which appear under a variet= y of names, from ``pro forma'' to ``core.'' (Enron offers its own such vers= ion. Before investors untangled the importance of Enron's first announcemen= t, its stock rose briefly because it told investors that its ``recurring ne= t income'' had met expectations.) The resulting murk makes it difficult to = answer the most basic question in investing: What did my company earn?=20 Why calculate a second set of earnings in the first place? Because the numb= ers reached by applying generally accepted accounting principles (GAAP) are= woefully inadequate when it comes to giving investors a good sense of a co= mpany's prospects. Many institutional investors, most Wall Street analysts,= and even many accountants say GAAP is irrelevant. ``I don't know anyone wh= o uses GAAP net income anymore for anything,'' says Lehman Brothers Inc. ac= counting expert Robert Willens. The problem is that GAAP includes a lot of = noncash charges and one-time expenses. While investors need to be aware of = those charges, they also need a number that pertains solely to the performa= nce of ongoing operations.=20 That's what operating earnings are supposed to do. But because they're calc= ulated in an ad hoc manner, with each company free to use its own rules, co= mparisons between companies have become meaningless. ``No investor--certain= ly not any ordinary investor--can read these in a way that's useful,'' says= Harvey L. Pitt, chairman of the Securities & Exchange Commission. The SEC = is examining whether new rules are needed to clarify financial reports and = perhaps restrict use of pro formas.=20 What's badly needed is a set of rules for calculating operating earnings an= d a requirement to make clear how they relate to net income. In the end, in= vestors need two numbers--a standardized operating number and an audited ne= t-income number--and a clear explanation of how to get from one to the othe= r. ``OUT OF HAND.'' A widespread consensus is building to do just that. In = early November, S&P proposed a set of rules for companies to follow when ta= llying operating earnings. Only the week before, the Financial Accounting S= tandards Board, the rulemakers for GAAP, had announced that they, too, woul= d be taking up this issue. Volcker says the International Accounting Standa= rds Board is also seeking a uniform definition of operating earnings.=20 ``Over the past two or three years, the use of creative earnings measures h= as grown and grown and grown to the point where it has really gotten out of= hand,'' says David M. Blitzer, S&P's chief investment strategist. ``Earnin= gs are one of the key measures that anybody looks at when they're trying to= evaluate a company. If people want to use an operating-earnings measure, w= e better all know what we're looking at.''=20 Without those standards in place, the gap between earnings according to gen= erally accepted accounting principles and earnings according to Wall Street= is only going to grow wider and more confusing. Look at the variance in ea= rnings per share calculated for the S&P 500 for the third quarter: It's $10= .78 according to Wall Street analysts as tallied by Thomson Financial/First= Call, $9.17 according to S&P, and $6.37 according to numbers reported to t= he SEC under GAAP. (S&P, like BusinessWeek, is owned by The McGraw-Hill Com= panies.)=20 The lack of a standard measure can be costly to those who choose wrong. Use= First Call's earnings for the past four quarters and you get a relatively = modest price-earnings ratio of 23 for the S&P 500. But run the numbers usin= g GAAP earnings, and suddenly the market has a far steeper p-e of 38.=20 How did we get into this mess? Investors and analysts have been calculating= operating earnings for years, and for years, reasonable people could more = or less agree on how to do it. Then came the dot-com bubble, along with inc= reased pressure from Wall Street for companies to meet their quarterly earn= ings forecasts. Suddenly, companies that hadn't turned a profit by any conv= entional measure started offering ever more inventive earnings variants. Th= ese customized pro forma calculations excluded a grab bag of expenses and a= llowed upstart companies to show a profit. ``TOWER OF BABEL.'' Pro forma fo= rmulas vary wildly from company to company and even from quarter to quarter= within the same company, casting doubt on their validity. And these days, = the gulf between net earnings and pro forma earnings is wider than ever. S&= P's tallies fall between the two: S&P's numbers are more systematic than pr= o forma, but they aren't followed widely enough to be a standard. ``Investo= rs are facing a Tower of Babel,'' says Robert K. Elliott, former chief of t= he American Institute of Certified Public Accountants (AICPA) and a retired= KPMG partner. ``It's not standardized, and the numbers are not audited.''= =20 That makes it tough to evaluate a company's performance. In the quarter end= ed on Sept. 30, Nortel Networks Corp. offered shareholders at least three e= arnings numbers to choose from. By conservative GAAP accounting, the teleco= mmunications giant lost $1.08 a share. The company also provided two possib= le pro forma options: a 68 cents loss that excluded ``special charges,'' in= cluding some acquisition costs and restructuring charges, and a still bette= r 27 cents loss that further excluded $1.9 billion of ``incremental charges= ,'' such as writing down inventories and increasing provisions for receivab= les. Wall Street chose the rosiest one.=20 Confusing? You bet. Companies defend their pro forma calculations by pointi= ng out that they're merely filling a void: Investors are clamoring for a me= asure that gives them better insight into their company's future. The goal = is to get to the core of the business and try to measure the outlook for th= ose operations. ``There are good reasons why there is an emphasis on operat= ing earnings,'' says Volcker. ``It is an effort to provide some continuity = and some reflection of the underlying progress of the company.'' Besides, a= s companies like to point out, they still have to report GAAP earnings, and= investors are free to ignore everything else.=20 There's no starker lesson in the shortcomings of GAAP than the $50 billion = asset write-downs by JDS Uniphase Corp., the biggest charge of the year. Ne= ar the height of the telecom bull market in July, 2000, the San Jose (Calif= .) maker of fiber optics topped off a buying spree by acquiring competitor = SDL Inc. for $41 billion in stock. When the deal closed in February, its as= sets ballooned from $25 billion to $65 billion. But by then, shares of JDS = and other fiber-optics makers were collapsing. To bring its acquisitions in= to line with their new value, the company took charges of $50 billion. Desp= ite the fact that the bulk of its losses stemmed from stock transactions an= d involved no cash paid, GAAP required that the charges be taken out of net= income. So according to GAAP, JDS lost $56 billion in the fiscal year endi= ng in June--a staggering figure for a company whose revenues over the past = five years added up to only $5 billion.=20 Analysts and the company argue that besides not involving cash, the charge-= off was all about the past, a right-sizing of values that had gotten out of= hand. To analyze the company's prospects, they excluded the $50 billion ch= arge. ``The accounting is not designed to make things look better but to de= scribe what happened,'' says JDS Uniphase Chief Financial Officer Anthony R= . Muller, ``and we'll live with the consequences, whatever they are.'' Anal= ysts make a similar defense. ``My goal is to figure out what the business i= s going to produce so that we can value the company,'' says Lehman Brothers= analyst Arnab Chanda. GLACIAL PACE. Are JDS's pro forma numbers realistic-= -a fair gauge of JDS's ongoing operations? Right now, it's hard for investo= rs to judge. And that's the kind of ambiguity S&P and others would like to = eliminate. In November, S&P circulated a memo on how to standardize operati= ng earnings. Under the proposal, operating earnings would include the costs= of purchases, research and development, restructuring costs (including sev= erance), write-downs from ongoing operations, and the cost to the company o= f stock options. It would exclude merger-and-acquisition expenses, impairme= nt of goodwill, litigation settlements, and the gain or loss on the sale of= an asset.=20 When S&P applied roughly that formula to JDS Uniphase, it split the differe= nce between Wall Street and GAAP. Because of differences in what each group= included in their earnings calculations, the results were chaotic. Using G= AAP, the company lost $9.39 a share. S&P figures it lost $3.19, while the c= ompany put the loss at 36 cents. Meanwhile, Wall Street says it made 2 cent= s.=20 The S&P standard may make sense, but it raises the question: Where is the F= inancial Accounting Standards Board, the group in charge of GAAP? Chairman = Edmund L. Jenkins says FASB will be addressing the problems. Still, investo= rs shouldn't expect any improvement soon. The pace of change at FASB tends = to be glacial. It typically takes four years to complete a new standard. In= 1996, for example, the board realized that standards on restructuring char= ges had some big loopholes and it resolved to put the issue on its agenda. = In June, 2000, the board finally issued a draft of a new standard, asked fo= r comments, and held a public hearing. In October, 2001, the board said it = still wasn't ready to put a fix in place. Now, the recession has set off an= other wave of restructuring charges, and the FASB still doesn't have new ru= les.=20 The slow pace means the standard-setters sometimes fail to react to sudden = changes in the market. The most recent failure followed the terrorist attac= ks on September 11. An FASB task force, unable to come up with a set of rul= es for separating September 11 costs from general expenses, instead told co= mpanies that the disaster could not be treated as an extraordinary item. So= GAAP earnings include costs stemming from the disaster as part of a compan= y's general performance. Many companies have nevertheless broken those cost= s out in their unaudited press releases.=20 Many more are likely to do so in the fourth quarter. Indeed, 2001 is shapin= g up to be one for the record books. A poor economy and the devastating aft= ereffects of September 11 have resulted in a slew of unusual charges that a= re unlikely to recur and that no one could have foreseen. But there's a gro= wing concern that the earnings fog is providing managers with cover to hide= missteps of the past within that vast category of supposedly one-time char= ges. The temptation will be to take as big a charge as possible now, while = investors are braced for bad news. Not only can managers sweep away yesterd= ay's errors, but tomorrow's earnings will look even better.=20 The basic question comes down to what constitutes a special expense--a char= ge so unusual that to include it in the earnings calculation would be to di= stort the truth about a company's performance. Usually, big charges fall in= to a few categories, including charges for laying off workers and restructu= ring a company, charges for assets that have lost value since they were pur= chased, charges for investments that have lost value, and charges for inven= tory that has become obsolete. In a recent study, Harvard Business School p= rofessor Mark T. Bradshaw found that companies are increasingly calling the= se charges unusual. That gives them a rationale for excluding them from the= ir pro forma calculations.=20 Lots of critics disagree, saying such charges are often an inevitable part = of the business cycle and should be reflected in a company's earnings histo= ry. They certainly should not be ignored by investors. ``Charges are real s= hareholder wealth that's been lost,'' argues David W. Tice, manager of the = Prudent Bear Fund, a mutual fund with a pessimistic bent that's up 17% so f= ar this year. ``It's money they spent on something no longer worth what it = was, a correction of past earnings, or a reserve for costs moving forward. = Whatever the reason, it's a real cost to the company, and that hurts shareh= olders.'' Without standards, excessive write-offs from operating earnings c= an obscure actual performance. Without any rules, companies calculate opera= ting earnings inconsistently in order to put their companies in the best po= ssible light. Dell Computer Corp. is a good example of this ``heads I win, = tails you lose'' school of accounting. For years, Dell benefited from gains= in its venture-capital investments and was happy to include those gains in= its reported earnings, where they appeared as a separate line on the incom= e statement. But this year, when those gains turned to losses, the computer= maker issued pro forma numbers that excluded that $260 million drag. Dell = spokesman Michael Maher says the company's press releases and SEC filings b= reak out investment income and give GAAP numbers as well as pro forma. ``In= our view, the numbers are reported clearly,'' says Maher. ``It's all out t= here for the consuming public.'' PAST PUFFERY. Many experts believe special= charges are a sign that past performance was exaggerated. What should inve= stors make of a company such as Gateway Inc.? Two restructuring charges in = the first and third quarters, minus a small extraordinary gain, totaled $1.= 12 billion, or about $100 million more than the company made in 1998, 1999,= and 2000 combined. Which is the truer picture of its performance and poten= tial? The write-offs or the earnings? Write-offs for customer financing are= another example. When Nortel increased its reserves for credit extended to= customers by $767 million in September, it effectively admitted it had boo= ked sales in the past to companies that couldn't pay--in effect overstating= its performance in those earlier periods. In addition, Nortel says booking= sales and accounting for credit are unrelated issues. Tech companies blame= the sharp downturn in their industry for the big write-offs. And these are= n't isolated examples. Peter L. Bernstein, publisher of newsletter Economic= s & Portfolio Strategy, found that from 1989 to 1993, 20% of earnings vanis= hed into write-offs.=20 Big charge-offs can also distort future performance. Critics contend that e= xcess reserves are often used as a sort of ``cookie jar'' from which earnin= gs can be taken in future quarters to meet Wall Street's expectations. Or c= harges taken this year, for example, which is apt to be a lousy one for mos= t companies anyway, might include costs that would otherwise have been take= n in future periods. Prepaying those costs gives a big boost to later earni= ngs. Rules for figuring operating earnings would help, but this is an area = that will always involve a certain amount of judgment--and therefore invite= a certain amount of abuse. ``People are going to write off everything they= can in the next two quarters because they're having a bad year anyway,'' s= ays Robert G. Atkins, a Mercer Management consultant.=20 Part of the lure of big special charges is that investors tend to shrug the= m off, believing that with the bad news out in the open, the company is poi= sed for a brighter future. Since Gateway detailed its third-quarter charge = of $571 million on Oct. 18, Wall Street has bid the stock up 48%, compared = with a 6% runup for the S&P 500.=20 Often, though, investors should take exactly the opposite message. If, for = example, part of a restructuring involves slashing employee training, infor= mation-technology spending, or research and development, the cuts could dep= ress future performance, says Baruch Lev, a professor of accounting at the = Stern School of Business at New York University. ``Are these really one-tim= e events?'' he asks. ``Or is this the beginning of an avalanche?'' Indeed, = Morgan Stanley Dean Witter & Co. strategist Steve Galbraith has found that = in the year following a big charge-off to earnings companies have underperf= ormed the stock market by 20 percentage points. ``LA LA LAND.'' Investors a= re apt to be faced with more huge write-offs next year, even if the economy= doesn't continue to worsen. Why? The transition to a new GAAP rule that ch= anges the way companies account for goodwill--a balance-sheet asset that re= flects the amount paid for an acquisition over the net value of the tangibl= e assets. Under the new rule, companies will have to assess their propertie= s periodically and decrease their worth on the balance sheet if their value= falls. An informal survey by Financial Executives International of its mem= ber controllers and financial officers found that at least a third expect t= o take more charges.=20 But figuring out the proper value of those assets is no easy task. Unless t= here is a comparable company or factory with an established market price, v= aluing them involves a lot of guesswork for which there are no firm rules. = ``What this is really coming down to is corporations and their auditors com= ing up with their own tests for impairment,'' says the Stern School's Profe= ssor Paul R. Brown. ``It's La La Land.''=20 While the tidal wave of special charges is providing cover for earnings gam= es, it could also be an impetus for change--especially in the wake of the d= ot-com fiasco. Indeed, there are some signs of a backlash. The real estate = investment trust industry was a pioneer of engineered earnings, with its ``= funds from operations,'' or FFO. But now some REITs have begun to revert to= plain old GAAP earnings. Hamid R. Moghadam, CEO of San Francisco-based AMB= Property Corp., shifted back to GAAP in 1999. ``The reason I don't like FF= O is very simple,'' says Moghadam. ``One company's numbers look better than= another one's even if they had identical fundamental results.''=20 There are other steps FASB could take to improve financial reporting and re= store GAAP's status. Trevor S. Harris, an accounting expert at Morgan Stanl= ey, says it could force companies to make clear distinctions between income= from operations and income from financial transactions. Lehman's Willens s= ays companies should provide more information on cash expenses and how they= bear on earnings. An easy step would be to require companies to file their= press releases with the SEC.=20 At the least, says Lev, companies must clearly explain how their pro forma = numbers relate to the GAAP numbers. Otherwise, he says, investors ``see num= bers floating there, and where did they come from?'' In today's environment= of unregulated pro forma calculations and supersize write-offs, no questio= n is more important to investors. High-Gloss Glossary Companies are using a variety of accounting practices to put the best spin = on their results. Here's what those terms mean: DEFINING EARNINGS: NET INCOME The bottom line, according to generally accepted accounting principles (GAA= P). Sometimes called ``reported earnings,'' these are the numbers the Securitie= s & Exchange Commission accepts in its filings. OPERATING EARNINGS An adjustment of net income that excludes certain costs deemed to be unrela= ted to the ongoing business. Although it sounds deceptively like a GAAP figure called ``operating income'' (revenue minus the costs of doing business), it= is not an audited figure. CORE EARNINGS Another term for operating earnings. Neither core nor operating earnings ar= e calculated according to set rules. They can include or exclude anything the preparer wishes. PRO FORMA EARNINGS The 1990s term for operating earnings. Popularized by dot-coms, it sometime= s excludes such basic costs as marketing and interest. EBITDA Earnings before interest, taxes, depreciation, and amortization. The granddaddy of pro forma, it was initially highlighted by industries that carried high debt loads, such as cable TV, but has since come to be widely quoted. ADJUSTED EARNINGS A new term for pro forma. DEFINING COSTS: SPECIAL CHARGES A general term for anything a company wants to highlight as unusual and therefore to be excluded from future earnings projections. ASSET IMPAIRMENTS Charges taken to bring something a company paid a high price for down to it= s current market value. Many companies are now taking these charges on intern= al venture-capital funds that bought Internet and other high-tech stocks at inflated prices. GOODWILL IMPAIRMENTS The same idea as asset impairments except they're used to write down the premium a company paid over the fair market value of the net tangible asset= s acquired. These charges will explode in the first quarter of 2002 because o= f a change in mergers-and-acquisitions accounting that eliminates goodwill amortization and requires holdings to be carried at no more than fair value= s. RESTRUCTURING RESERVES An accrued expense (not usually cash) to cover future costs of closing down= a portion of a business, a plant, or of firings. These are projected costs an= d if overstated can later become a boost to earnings as they are reversed. WRITE-DOWN Lowering the value of an asset, such as a plant or stock investment. It is often excused as a bookkeeping exercise, but there may have been a real cos= t long ago that now proves ill spent, or there may have been associated cash costs, such as investment-banking fees. Illustration: Chart: THE BIG BATH CHART BY ERIC HOFFMANN/BW=20 Illustration: Chart: EARNINGS CHAOS CHART BY ERIC HOFFMANN/BW=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Editorials END THE NUMBERS GAME 11/26/2001 BusinessWeek 130 (Copyright 2001 McGraw-Hill, Inc.) What did the company earn? That's the most basic question an investor can e= ver ask. The equity culture that has generated so much growth over the year= s depends on a clear answer, but getting one has become impossible. Enron C= orp. just announced that its earnings for the past three years were oversta= ted by half a billion dollars. How did one of the biggest companies on the = New York Stock Exchange manage to inflate its earnings by 20% without audit= ors, analysts, ratings agencies, and the business press (BusinessWeek inclu= ded) discovering it? In part, blame the breakdown of standardized accountin= g rules and the anarchy that runs rampant in the financial statements of Co= rporate America. The U.S. needs a new set of accounting rules that gives a = clear picture of financial performance. Without integrity in financial repo= rting, the U.S. cannot hope to remain the preeminent place to invest in the= global marketplace (page 76).=20 The dot-com bubble was the first indication that there was something seriou= sly wrong with accounting standards. Companies without much of a business m= odel customized their quarterly statements to exclude a grab bag of expense= s in order to put a positive financial spin on their operations. Wall Stree= t conspired in this and encouraged big companies to join in. Soon, the meth= od of calculating earnings began to vary from company to company and even f= rom quarter to quarter within a company. It is now chaos. A stricter adherence to accounting rules won't solve the entire problem. GA= AP, the generally accepted accounting principles, allow all kinds of one-ti= me expenses and noncash charges. This obscures the performance of ongoing o= perations. No one can fathom what are true operating earnings because there= are no guidelines as to what constitutes an extraordinary expense. The res= ult is total confusion. Take earnings per share for the Standard & Poor's 5= 00-stock index for the second quarter. Under Thomson Financial/First Call s= tandards, it is $11.82. But it's $9.02 according to S&P and $4.83 under GAA= P. How can investors make intelligent decisions?=20 The Financial Accounting Standards Board clearly is failing to do its job. = It has promised to write a set of rules that calculates operating earnings = and relates them to net earnings, but it hasn't delivered. The rating agenc= y Standard & Poor's (owned by The McGraw-Hill Companies, as is BusinessWeek= ) is doing a better job. It recently drew up a definition of ``operating ea= rnings'' that includes restructuring costs (including severance), writedown= s from ongoing operations, and the cost of stock options. It excludes merge= r and acquisition expenses, litigation settlements, impairment of goodwill,= and gains or losses on asset sales. This is a beginning that FASB should b= uild on. The accounting anarchy has to end. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Up Front: AFTERLIVES FREE AND CLEAR OF ENRON'S WOES Edited by Sheridan Prasso=20 By Stephanie Anderson Forest 11/26/2001 BusinessWeek 16 (Copyright 2001 McGraw-Hill, Inc.) Back in Enron's heyday, one of its rising stars was Rebecca Mark. Nicknamed= ``Mark the Shark'' because of her ferocious ambition, she made her name in= the early '90s building the energy giant's international operations, inclu= ding the now-troubled Dabhol power plant in India. Once rumored to be a suc= cessor to Enron CEO Ken Lay, she resigned from Enron in August, 2000, after= two years of heading Enron's ailing water company spin-off, Azurix.=20 These days, as Enron struggles to stay afloat, Mark-Jusbasche (who hyphenat= ed her name with that of her husband of two years) is watching the action f= rom the sidelines. And she'd like to keep it that way. ``I'm very surprised= and saddened by [what has happened at Enron], and I wish them all the best= ,'' she says. Beyond that, Mark-Jusbasche, 47, is not much interested in ta= lking about Enron, which is being acquired by a small rival after a spectac= ular Wall Street flameout. Mark left Enron with millions of dollars worth o= f Enron shares, although she says she has sold them since. Mark-Jusbasche spends most of her time serving on advisory boards, both at = Yale and Harvard business schools, as well as the school where her 16-year-= old twin sons from a previous marriage are sophomores.=20 In her spare time, she seeks out opportunities for investing. Currently, Ma= rk-Jusbasche is considering alternative-energy and water-technology compani= es. A farm girl from Missouri, she has one investment focus that's especial= ly dear to her heart: looking into expanding her cattle ranches. She now ow= ns 15 acres in New Mexico. ``I'm doing things that are fun, interesting, an= d important to me--family and community,'' she says. Sure beats being anywh= ere near Enron. Photograph: MARK: Now just a bystander PHOTOGRAPH BY BRETT COOMER/AP/WIDE W= ORLD=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 COMPANIES & FINANCE INTERNATIONAL - Enron still optimistic of averting fina= ncial meltdown. By ANDREW HILL and SHEILA MCNULTY. 11/26/2001 Financial Times (c) 2001 Financial Times Limited . All Rights Reserved Enron said yesterday it was still expecting outside investors to inject $50= 0m to $1bn into the group, as talks continued to avoid a financial meltdown= at the energy trading group.=20 Dynegy, whose rescue bid for its Houston rival is crucial to Enron's surviv= al, spent last week's Thanksgiving holiday and the weekend reviewing Enron'= s operations and finances. Dynegy said it remained "optimistic for the potential of the merger to be c= ompleted, and in the time-frame we originally announced - six to nine month= s".=20 Enron's fate depends on a delicate, unofficial pact between its lenders, Dy= negy, and credit ratings agencies, which have resisted downgrading the grou= p's debt while the deal is pending.=20 If the pact stays in place, at least $500m is likely to be invested in Enro= n by JP Morgan Chase and Citigroup, Enron's key lenders and advisers. A fur= ther $500m is being sought from private equity firms.=20 But if Dynegy pulls out of the deal, the cash infusion could be put in jeop= ardy and the ratings agencies could downgrade the debt to junk, triggering = debt repayments across a network of partnerships and off-balance-sheet vehi= cles linked to Enron.=20 Enron confirmed yesterday that it was still seeking additional liquidity fr= om new equity investors, but would not discuss their identities.=20 Enron's crisis of confidence became more acute last week when the shares fe= ll from $9 to $4.74 following a regulatory filing that revealed the extent = of the group's debt burden.=20 Completion of a $1bn secured credit line from JPM Chase and Citigroup, and = the postponement of a $690m notes repayment due tomorrow were not sufficien= t to prop up the share price. The bonds also fell to levels consistent with= a potential bankruptcy filing.=20 The slide in the share price has encouraged speculation that Dynegy is prep= aring to renegotiate its all-stock bid, now worth $9.3bn, compared with Enr= on's market value of $3.5bn.=20 But people close to Enron say renegotiation of the deal would not in itself= have any impact on the energy group's finances. Latest news, www.ft.com/en= ron.=20 (c) Copyright Financial Times Ltd. All rights reserved.=20 http://www.ft.com. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Schwab Chief's Main Theme: Diversification By Lynnette Khalfani Dow Jones Newswires 11/26/2001 The Wall Street Journal (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW YORK -- More than two months after the Sept. 11 terrorist attacks, many= investors remain edgy. But the stock market, after an initial selloff, has= shown remarkable resilience.=20 Few observers expect stock-market volatility to subside soon. Still, expert= s say that now, more than ever, is the time for skittish investors to keep = their wits about them. In a recent interview, Charles R. Schwab, chairman and co-chief executive o= f Charles Schwab & Co., the San Francisco-based online and discount brokera= ge firm, gave his views on what investors should be doing -- and what mista= kes they should avoid.=20 Here are some excerpts from the interview:=20 In the wake of the Sept. 11 attacks, how much more risk, if any, do you thi= nk is in the financial markets? Or do you think it's just that people's per= ceptions about risk have changed?=20 I've been investing since 1959, and I have to say that, year after year, th= e risk hasn't changed. The risk is always there. There's risk in investing = in stocks, bonds and even U.S. Treasuries because of interest-rate [fluctua= tions]. There's risk in real estate, too.=20 So the question is: How do you handle it? The best way is to diversify. Ove= r a long period of time, people who diversify their investments do pretty d= arned well. When they don't . . . sometimes it's fatal. If the only stock a= n investor owned was Enron . . . or Cisco at 70, that was pretty fatal.=20 What do you say to people who say they're too scared to invest right now? T= hat because of the threat of terrorism, the anthrax scares, the war in Afgh= anistan, the recession, and so forth, there's just too much uncertainty in = the markets?=20 I remember back during the Cuban missile crisis, we all feared the worst. W= e were all building bomb shelters. It was a scary time. This terrorist thin= g is no different. It's awful -- particularly for our children. But this co= untry is so wealthy, in terms of its resources, intellectual capital and th= e strength of our government.=20 There is no more uncertainty today than in times past. For example, we've h= ad many recessions. It's not fun, especially when you begin reading about a= ll these layoffs. In fact, I think the unemployment rate [now at 5.4%] pret= ty easily might get to 6.5% before it gets better. And it probably won't ge= t better until March or April. Also, the stock market will go up, hopefully= before the economy goes up.=20 There's $2 trillion sitting in money-market accounts. That's a huge resourc= e and buying power that's definitely available for new investments.=20 What do you think is the biggest mistake investors have made over the past = two or so months?=20 They let their emotions take over. With the fear that people had, they didn= 't use their rational thinking. They used their emotional thinking. [After = Sept. 11], they sold at the low, and fear was the driver.=20 Just a year and a half ago, the driving emotion was greed. You're not going= to avoid this stuff. So the issue is how you manage through these cycles o= f fear and greed. Even when I'm fearful of something, I say to myself: "Thi= s is still the time to invest."=20 My biggest worry right now is that people will give up and say, "I just don= 't want to be in the stock market at all." And it's just the time that peop= le should be hanging on and keeping a diversified portfolio.=20 Some other mistakes: A lot of people hang on to the stock that was the post= er child of the last cycle. Or people say, "I'll get back in [the market] w= hen I see the economy turn around." Well, by the time they see that, it's t= oo late. They will have missed the whole ride back up. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Business; Financial Desk Enron Pursuing a Cash Infusion Energy: Company is seeking as much as $1bill= ion as it tries to shore up its endangered acquisition by Dynegy. From Bloomberg News 11/26/2001 Los Angeles Times Home Edition C-2 Copyright 2001 / The Times Mirror Company HOUSTON -- Enron Corp. said talks are continuing with potential investors f= or an infusion of as much as $1 billion as the biggest energy trader tries = to avoid a collapse of its planned purchase by Dynegy Inc.=20 An investment would ease concern that Enron's weakened finances may prompt = Dynegy to pull out of or renegotiate the terms of the transaction, which is= valued at $23 billion in stock and assumed debt. Enron is seeking an additional $500 million to $1 billion in cash but would= n't divulge details. "We are not going to discuss the particulars of who we= are talking to," Enron spokeswoman Karen Denne said Sunday.=20 Shares of the Houston company fell by 48% in the last three trading session= s on the New York Stock Exchange. At Friday's closing price of $4.71, the s= tock sells for less than half the $10.85 that Dynegy is slated to pay in th= e acquisition. That's a sign investors are skeptical the transaction will g= o through as planned.=20 Enron is likely to have approached Kohlberg, Kravis Roberts & Co., Blacksto= ne Group and Carlyle Group for a private equity investment, said industry a= nalyst David Snow of PrivateEquityCentral.Net.=20 The firms have declined to comment.=20 In a conference call Nov. 14, Enron Chief Financial Officer Jeffrey McMahon= said the company is in talks with several private investors and expects to= receive $500 million to $1 billion from those sources.=20 On Wednesday, Enron got a three-week reprieve from lenders on a $690-millio= n note due this week, gaining more time to restructure its finances. Dynegy= Chief Executive Chuck Watson said he was "encouraged" by the commitment to= extend the note payment as well as the closing of a $450-million credit fa= cility. He said Dynegy remained committed to the purchase.=20 Enron already received $1.5 billion in cash Nov. 13 from ChevronTexaco Inc.= as part of the Dynegy buyout agreement. In return, Dynegy received preferr= ed stock and other rights in an Enron unit that owns the Northern Natural G= as Co. pipeline. Under the deal's terms, if Dynegy and Enron fail to merge,= Dynegy can acquire the pipeline company.=20 But Barron's reported over the weekend that Dynegy's right to the pipeline = might be challenged by J.P. Morgan Chase & Co. and Salomon Smith Barney Inc= ., which accepted the asset as collateral for $1billion in loans to Enron.= =20 Dynegy spokesman John Sousa declined to comment on Enron's attempts to secu= re financing or whether more cash for Enron is a condition of keeping the m= erger alive.=20 Enron's dealings with affiliated partnerships have led to a federal investi= gation of the company, which restated its earnings and saw its credit ratin= gs cut.=20 The company said in a Securities and Exchange filing a week ago that it has= less than $2 billion in cash and credit lines left. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Dynegy Optimistic That Enron Merger Will Succeed - FT 11/26/2001 Dow Jones International News (Copyright (c) 2001, Dow Jones & Company, Inc.) LONDON -(Dow Jones)- Dynegy Inc. (DYN) remains optimistic, after further re= view of Enron Corp.'s (ENE) finances last week, that it will be able to buy= the company, the Financial Times reported Monday.=20 Dynegy said that it, "remained optimistic for the potential of the merger t= o be completed, and in the time frame we originally announced - six to nine= months," the FT reported. Critical investment in Enron by J.P. Morgan Chase and Citigroup will procee= d only if an unofficial pact between Enron, Dynegy, and Enron's lenders and= credit rating agencies remains intact, the report said. Investment from th= ese two is likely to total between $500 million and $1 billion, while Enron= continues to look for a further $500 million from private equity firms.=20 The deal suffered a setback last week, when a regulatory filing revealed a = greater debt burden than some investors had realized. Enron's share price f= ell following the report, to $4.74 from $9.00.=20 A $1 billion secured credit line from J.P. Morgan Chase and an extension of= a $690 million repayment due Tuesday weren't enough to keep the share pric= e from falling. This led to speculation that Dynegy was considering renegot= iating its all-stock bid, now at $9.3 billion, compared with Enron's market= value of $3.5 billion, said the report.=20 Renegotiating the deal wouldn't have any impact on Enron's finances, unname= d sources told the FT.=20 But if Dynegy pulled out of the deal altogether, there might be no cash inf= usion from J.P. Morgan chase and Citigroup. Credit ratings agencies could t= hen downgrade Enron's debt to junk, forcing partners to repay debts, the re= port said.=20 -By Sarah Spikes, Dow Jones Newswires; +44-(0)20-7842-9345; sarah.spikes@do= wjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Dynegy Purchase Prompts Antitrust Concerns, L.A. Times Says 2001-11-26 07:36 (New York) Washington, Nov. 26 (Bloomberg) -- California Attorney General Bill Lockyer is examining Dynegy Inc.'s proposed acquisition of rival energy seller Enron Corp. for possible antitrust violations, the Los Angeles Times reported. The California Independent System Operator, which manages the state's electric grid, has asked federal regulators to ban Dynegy and other major power sellers, including Mirant, and AES Corp.'s Williams Cos., from selling electricity at market prices in the state, the Times said. Throughout the state's power crisis, Governor Gray Davis and other officials accused Dynegy, Enron and other power companies of withholding electricity and manipulating the cost of wholesale power to gouge consumers, the Times said. Enron is negotiating with bankers to restructure $9.15 billion in debt. ``I would hope that the people who look at the antitrust implications would consider this one carefully,'' California State Senator Steve Peace, a Democrat, told the Times. ``If anything, Dynegy would be in an even stronger position to be able to manipulate markets than it was before.'' Financial Post: News Enron hopes for infusion of capital: Seeks US$500M as talks of Dynegy merge= r continue Andrew Hill and Sheila McNulty Financial Times 11/26/2001 National Post National FP3 (c) National Post 2001. All Rights Reserved. Enron Corp. said yesterday it was still expecting outside investors to inje= ct US$500-million to US$1-billion into the group, as talks continued to avo= id a financial meltdown at the energy trading group.=20 Dynegy Inc., whose rescue bid for its Houston-based rival is crucial to Enr= on's survival, spent last week's U.S. Thanksgiving holiday and the weekend = reviewing Enron's operations and finances. Dynegy said it remained "optimistic for the potential of the merger to be c= ompleted, and in the time-frame we originally announced -- six to nine mont= hs."=20 Enron's fate depends on a delicate, unofficial pact between its lenders, Dy= negy, and credit ratings agencies, which have resisted downgrading the grou= p's debt while the deal is pending.=20 If the pact stays in place, at least US$500-million is likely to be investe= d in Enron by JP Morgan Chase and Citigroup, Enron's key lenders and advise= rs. A further US$500-million is being sought from private equity firms.=20 But if Dynegy pulls out of the deal, the cash infusion could be put in jeop= ardy and the ratings agencies could downgrade the debt to junk, triggering = debt repayments across a network of partnerships and off-balance-sheet vehi= cles linked to Enron.=20 Enron confirmed yesterday it was still seeking additional liquidity from ne= w equity investors, but would not discuss their identities.=20 Enron's crisis of confidence became more acute last week when the shares fe= ll to US$4.74 from US$9 after a regulator filing that revealed the extent o= f the group's debt burden.=20 Completion of a US$1-billion secured credit line from JPM Chase and Citigro= up, and the postponement of a US$690-million notes repayment due tomorrow, = were not sufficient to prop up the share price. The bonds also fell to leve= ls consistent with a potential bankruptcy filing.=20 The slide in the share price has encouraged speculation Dynegy is preparing= to renegotiate its all-stock bid, now worth US$9.3-billion, compared with = Enron's market value of US$3.5-billion.=20 But people close to Enron say renegotiation of the deal would not in itself= have any impact on the energy group's finances. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 India's Aditya Birla Not Eyeing Enron's Stake In Dabhol 11/26/2001 Dow Jones International News (Copyright (c) 2001, Dow Jones & Company, Inc.) NEW DELHI -(Dow Jones)- India's Aditya Birla Group on Monday denied local m= edia reports that said it is considering acquiring U.S. energy company Enro= n Corp.'s (ENE) stake in Dabhol Power Co.=20 "I have checked with our directors and can tell you that the Aditya Birla G= roup has shown no expression of interest in Dabhol," said group spokeswoman= Pragnya Ram. The Economic Times and Financial Express reported the group is exploring th= e possibility of submitting an expression of interest with Indian financial= institutions to buy Enron's stake in Dabhol.=20 Dabhol is a 2,184-megawatt power plant located in Maharashtra state.=20 Enron holds a controlling 65% stake in Dabhol. Costing $2.9 billion, the po= wer project is the single largest foreign investment in India to date.=20 Aditya Birla Group is a leading Indian conglomerate whose interests include= textiles and cement. Its two joint ventures with Britain's Powergen PLC (P= WG) to produce more than 1,000 MW of electricity in two Indian states haven= 't made much progress since their announcement in the mid-1990s.=20 -By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dow= jones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 The Enron scandal A V Rajwade 11/26/2001 Business Standard 10 Copyright (c) Business Standard Enron has always been recognised by other companies as best practice in ris= k management. It put in systems to manage risks on a real-time basis and ha= d very strong management." James Lam, founder of eRisk, a consulting firm.= =20 As an occasional teacher and more regularly a student of the subject of man= agement of price risks, I have been an admirer of Enron's elaborate disclos= ure of its risk management practices. And yet, in a cascade of events over = a period of just three weeks from mid-October, it lost two-thirds of its sh= are value, became the subject of a US Securities Exchange Commission (SEC) = investigation, and was taken over by a rival a third in size. (Latest repor= ts create some doubt about whether this will go through.) What went wrong? No, the events had nothing to do with Dabhol. Indeed, if, for us in India, = Enron will always be associated with the controversial power project, elsew= here it is likely become a case study for students of accounting, finance a= nd general management. (On second thoughts, even its Indian adventures woul= d make an excellent case study!)=20 But first, a recount of what happened. After announcing on October 16, with= out much explanation or transparency, that it has taken a charge of $ 1.2 b= illion against equity, Enron's share price started tumbling. Apparently, th= e charge was the result of some financial transactions, and the SEC launche= d an investigation. The chief financial officer (CFO), who was directly inv= olved with the transactions, the company's treasurer and a couple of other = senior officials were sacked.=20 Perhaps most damagingly, Enron revised its accounts from 1997 onwards, redu= cing profits by about $ 600 million and increasing debt by a somewhat simil= ar amount. As a result, Enron's credit rating was downgraded.=20 It seems the root problem was not in its basic business of power and gas tr= ading, but in its investment activities controlled by the CFO. These compri= sed private equity, and Enron's share in each of the investee companies was= kept artificially below 50 per cent to avoid consolidation of accounts. To= this end, outside investors were brought in and assured of equity in Enron= itself, should the value of the investee company(ies) fall below agreed th= reshold(s).=20 All this was done to keep the losses in investments off-balance sheet, and = mitigate their impact on reported profits. Many other US corporations inclu= ding J P Morgan Chase, which had large private equity investments, have suf= fered on this score (see World Money October 15). Enron wanted to avoid thi= s and, last year, paid its since-dismissed CFO $ 30 million for his creativ= e accounting genius.=20 Incidentally, those enamoured of US GAAP and its alleged superiority over t= he rest of the world should note that all these gimmicks were blessed by th= e company's auditors one of the Big Five firms, which was paid $ 25 million= as audit fees and $ 27 million for other services by Enron last year.=20 The restatement of the accounts from 1997 onwards became necessary as the E= nron management/board and the auditors were forced, on review, to admit tha= t at least some of the transactions should have been on, rather than off, b= alance sheet. Details of all the transactions in question are yet to come o= ut, but what has come out is bad enough.=20 But this apart, a billion dollar hit for a company of the size ($ 300 billi= on) or cash flow ($ 3 billion) of Enron is, by itself, hardly a death warra= nt. But it turned out to be just that for Enron.=20 Perhaps because it was too arrogant? Perhaps also because its accounts lack= ed transparency and their opaqueness ensured that investors' confidence was= always somewhat fragile?=20 But there are two other points worth noting: the professionalism of equity = analysts and whether the event restores somewhat the balance between tradin= g and producing. As for the first, the professional analysts were surely aw= are of the opaqueness of the accounts,but few questioned the management agg= ressively on the subject. Perhaps the stock was too glamorous and typified = the spirit of the times trading assets was what the "masters of the univers= e" did, not the boring old business of producing oil or power or cars. The = Enron management itself was proud of the way it operated in its principal a= ctivity of trading in power and gas, with Skilling, the former CEO, claming= that "we are on the side of angels. We are taking on the entrenched monopo= lies. We are bringing the benefits of choice and free markets to the world.= " (The quotation is from an interview in BusinessWeek, prior to Skilling's = inglorious exit from Enron a couple of weeks before the bubble burst).=20 For the analysts, there was also safety in numbers. Skilling claimed that "= Enron's operations are built around the integration of modern financial tec= hnologies and physical technologies", bringing derivatives theory to tradin= g in power and gas! Obviously, the fate of Long Term Capital Management has= not led to more sober management of trading risks.=20 Surely the role of "markets" should be to reduce the distance, and cost, be= tween producer and consumer? One does feel that there is something perverse= in a society that values, in terms of compensation, the trader (don't forg= et this is just a euphemism for the speculator) over the producer whether i= n the bond, currency or power and gas markets. The markets and, indeed, gre= ed obviously have a role to play, but surely the pendulum needs to swing a = little bit to the left? Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 India's Mehta Comments on Birla Group Offer to Buy Enron Stake 2001-11-26 03:42 (New York) Mumbai, Nov. 26 (Bloomberg) -- Jaywantiben Mehta, India's union minister of state for power, comments on reports of Aditya Birla Group, which owns Grasim Industry Ltd., the nation's third- biggest cement maker, bidding for Enron's stake in Dabhol Power Co. Enron wants to sell its 65 percent stake in Dabhol Power, India's biggest foreign investment, at cost. The project is mired in a tariff dispute over $64 million in bills that haven't been paid by the Maharashtra State Electricity Board, its only customer, for eight months. ``One more bidder will increase competition, which is welcome. ``Any step in the national interest is good. ``Cheap energy is always in the national interest since we want to increase electricity generation and sell it at a reasonable price. ``I can't comment on the time-frame of buying out the Enron stake until the legal wrangles are solved. Once that's cleared, then we will try and clear the proposal quickly.'' --Gautam Chakravorthy in the Mumbai newsroom (91-22) 233-9027	[email protected]
arnold-j/deleted_items/751.	subject: RE: content: thanks for the look -----Original Message----- From: Arnold, John Sent: Monday, November 26, 2001 2:05 PM To: Ward, Kim S (Houston) Subject: RE: I went already lazy -----Original Message----- From: Ward, Kim S (Houston) Sent: Monday, November 26, 2001 1:48 PM To: Arnold, John Subject: Did you go this morning? If not, do you want to go after work?	houston <[email protected]>	[email protected]
arnold-j/deleted_items/752.	subject: TRV Notification: (NG - PROPT P/L - 11/26/2001) content: The report named: NG - PROPT P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=11&report_name=NG+-+PROPT+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y&current_efct_date=11/26/2001>, published as of 11/26/2001 is now available for viewing on the website.	[email protected]	[email protected], [email protected], [email protected],
arnold-j/deleted_items/753.	subject: Hot Lots Without Bids at Winebid.com content: A quick reminder that Winebid.com's current auction is underway and that there are some terrific lots without bids. Take a look especially at the many large format bottles and wonderful recent-vintage Burgundies offered. Here are a few: 1989 Haut-Brion, 5 liters, Parker 100 pts, reserve $3,800 http://www.winebid.com/os/itemhtml/ht720177.shtml?720177 1982 Petrus, 6 liters, Parker 98 pts, reserve $13,995 http://www.winebid.com/os/itemhtml/ht720456.shtml?720456 1996 Cos d1Estournel, 3 liters, Wine Spectator 95 pts, reserve $370 http://www.winebid.com/os/itemhtml/ht720556.shtml?720556 1985 d'Yquem, 6 liters, Wine Spectator 91 pts, reserve $1,260 http://www.winebid.com/os/itemhtml/ht720676.shtml?720676 1997 Solaia (P. Antinori), 1.5 liters, WS 98 pts, also listed by WS as #1 of top 100 wines of 2000, reserve $640 http://www.winebid.com/os/itemhtml/ht721249.shtml?721249 1997 Chateau Montelena Estate, 1.5 liters, Parker 98 pts, reserve $240 http://www.winebid.com/os/itemhtml/ht721697.shtml?721697 1999 Corton Charlemagne (Louis Latour), 750 ml, Parker 90-91, reserve $95 http://www.winebid.com/os/itemhtml/ht720899.shtml?720899 1999 Montrachet (Bouchard), 750 ml, WS 95-100 pts, reserve $240 http://www.winebid.com/os/itemhtml/ht720903.shtml?720903 1986 Penfolds Grange (Hermitage), 750 ml, Parker 99 pts, reserve $230 http://www.winebid.com/os/itemhtml/ht723447.shtml?723447 1990 Perrier Jouet Cuvee Belle Epoque, 6-bottle case, WS 94 pts, reserve $450 http://www.winebid.com/os/itemhtml/ht720154.shtml?720154 If you click on a link in this email and it doesn't open properly in your browser, try copying and pasting the link directly into your browser's address or location field. Forget your password?: http://www.winebid.com/os/send_password.shtml To be removed from the mailing list, click here: http://www.winebid.com/os/mailing_list.shtml Be sure to visit the updates page for policy changes: http://www.winebid.com/about_winebid/update.shtml	[email protected]	[email protected]
arnold-j/deleted_items/754.	subject: Fw: The most popular wines from recent samplers together in one content: ----- Original Message ----- From: Christopher's Wine Warehouse To: Recipient list suppressed Sent: Monday, November 26, 2001 1:25 PM Subject: The most popular wines from recent samplers together in one case, schedule, another limited Italian Good afternoon wine lovers, Over the past three weeks, I have been monitoring the feedback from those of you who have purchased the weekly sampler cases. And it appears that we have found some winners. While all the wines have been well-received, the ones below have gained a serious following in just three short weeks. To give the rest of you a chance to see what all the buzz is about, and to help the regulars re-stock their wine racks after the Thanksgiving feast, I have put together our most recent sampler. As always, it comes with a special price, too. THE BEST FROM RECENT SAMPLER CASES, TOGETHER AT LAST (2 BTLS EACH): Finca Flichman Cabernet Mendoza Argentina 1999 (full bodied, concentrated fruit) 87 points Finca Flichman Malbec Mendoza Argentina 1998 (intense color, maximum Malbec expression) 87 points Vina Sardasol Cabernet Crianza 1995 (how did they get so much flavor at this price?!) 88 points L'Enclave des Papes Cabernet 2000 (surprising depth, mature fruit components) 87 points Chateau LaCroix Martelle Minervois 1999 (you may remember this, my house red, serious Syrah) 89 points Domaine Capouilleres Ventoux 1998 (so full of blue fruits, loves the spicy stuff) 87 points Let me tell you, this case is already a bargain at $155!!! LOAD UP, THIS WEEK ONLY (IF THEY LAST THAT LONG) FOR JUST $132 PLUS TAX!!! Now most of you know that these cases disappear before the week's end. So pick up the phone and call us now with your card number and we will be happy to set as many of these aside as you would like. Don't miss out! This is one heck of a great buy!!! As for the schedule: THURSDAY, NOVEMBER 29th: Topic: "UNBELIEVABLE CABERNET & MERLOT VALUES" Time: 6-8 PM (Champagne reception at 5:30 PM) We will be tasting through and discussing 8 of the best values in my store! Price per person: $18 plus tax RESERVATIONS ARE REQUIRED Please contact the store to reserve your seats 713-524-9144 FRIDAY, NOVEMBER 30TH: WINE BAR AT CHRISTOPHER'S For all of you who have visited over the past several weeks: Thank you for making this such a fabulous success!!! If you have not yet visited the Wine Bar on Friday, here are some details: We offer 45 wines by the glass to include reds, whites, sparkling wines & after dinner wines, too. Our amazingly talented Chef prepares 4 new menu items each week. In addition to the wines by the glass list, you may choose ANY wine in the store to enjoy with your foods or friends. BEST PART??? Retail prices for all wines, NOT restaurant prices!!! Our wines by the glass range from $4 to $15 & Our Chef's specials range from $10 to $22. No reservations are needed. Get here early for the best seats. Time: 6-10 PM Friday nights Location: here at Christopher's YOU HAVE GOT TO CHECK THIS OUT, IT IS A BLAST!!! SATURDAY, DECEMBER 1ST: CUSTOMER APPRECIATION DAY This Saturday, from 2-5 PM, please be our guest for this free tasting. We will be showcasing 6 new wines from around the world. California, France, Italy & Spain will all be open for tasting. No reservations are required. Super special discounts during the tasting. All new wines, never before seen at the bar. Get here early for best selection. Time: 2-5 PM Here at Christopher's No Charge Bring some friends and have a great tasting!!! How about something for the cellar? Or as an early gift for your own stocking??? Falesco Montiano 1999 (from the master himself, Cotarella, 2500 cases for the world, 24 bottles for us) 95 points from Parker LIMITED TO 2 BOTTLES PER CUSTOMER, $70 EACH, NET Well, I guess I'll head to the phones. Call us at 713-524-9144. Your friend in wine, Christopher "BEST WINE STORE" HOUSTON PRESS 2001 2516 Times BLVD Rice Village 713-524-9144www.christopherswine. com	[email protected]	[email protected]
arnold-j/deleted_items/755.	subject: TRV Notification: (NG - Price P/L - 11/26/2001) content: The report named: NG - Price P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=10&report_name=NG+-+Price+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y&current_efct_date=11/26/2001>, published as of 11/26/2001 is now available for viewing on the website.	[email protected]	[email protected], [email protected], [email protected],
arnold-j/deleted_items/756.	subject: OnePass Member continental.com Specials for john arnold content: continental.com Specials for john arnold Tuesday, November 27, 2001 **************************************** AIRTRAIN NEWARK NOW OPEN Fast, safe, and dependable direct train service from Newark Airport to midtown Manhattan in less than 30 minutes. Visit continental.com at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9.A for more information. TRAVEL UPDATES Be sure to check continental.com at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9-A before leaving for the airport. We're looking forward to welcoming you onboard! ************************************** TABLE OF CONTENTS 1. This Week's Destinations 2. Continental Vacations Offers 3. Hilton Hotels & Resorts, Doubletree Hotels & Resorts, & Embassy Suites Hotels Offers 4. Alamo Rent A Car Offers 5. National Car Rental Offers ************************************** 1. THIS WEEK'S DESTINATIONS Depart Saturday, December 1 and return on either Monday, December 3 or Tuesday, December 4, 2001. Please see the Terms and Conditions listed at the end of this e-mail. For OnePass members, here are special opportunities to redeem miles for travel to the following destinations. As an additional benefit, OnePass Elite members can travel using the miles below as the only payment necessary. The following are this week's OnePass continental.com Specials. To use your OnePass miles (as listed below) to purchase continental.com Specials, you must call 1-800-642-1617. THERE WILL NOT BE AN ADDITIONAL $20 CHARGE WHEN REDEEMING ONEPASS MILES FOR CONTINENTAL.COM SPECIALS THROUGH THE TOLL FREE RESERVATIONS NUMBER. If you are not using your OnePass miles, purchase continental.com Specials online until 11:59pm (CST) Friday at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9%2CA You can also purchase continental.com Specials for an additional cost of $20 per ticket through our telephone service at 1-800-642-1617. ************************************* TRAVEL MAY ORIGINATE IN EITHER CITY ************************************ Roundtrip BETWEEN NEW YORK/NEWARK and: $29 + 12,500 Miles or $119 - Ft. Lauderdale, FL $29 + 10,000 Miles or $109 - Hartford, CT $29 + 10,000 Miles or $109 - Manchester, NH $29 + 10,000 Miles or $109 - Providence, RI ****************************** 2. CONTINENTAL VACATIONS OFFERS 5,000 OnePass Bonus Miles Just for Skiing! Enjoy the best of Colorado's white powder during ski season. Book a ski package for 5 nights or longer and you can earn 5,000 OnePass Bonus Miles on Continental Airlines. For more information about this exciting offer, visit: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9%2BA *************************************** 3. CONTINENTAL.COM SPECIALS FROM HILTON HOTELS AND RESORTS, DOUBLETREE HOTELS AND RESORTS, AND EMBASSY SUITES HOTELS The following rates are available December 1 - December 3, 2001 and are priced per night. -------------------------------------- Fort Lauderdale, FL - Hilton Fort Lauderdale Airport, Dania, FL. - $119 Hartford, CT - Hilton Hartford, Hartford, CT. - $119 Manchester, NH - Hilton Dedham Place, Dedham, MA. - $79 Newark, NJ - Hilton Parsippany, Parsippany, NJ. - $89 Newark, NJ - Doubletree Club Suites Jersey City, Jersey City, NJ. - $159 New York, NY - Hilton New York, New York, NY. - $179/Night, 12/1-2 To book this week's special rates for Hilton Family Hotels, visit and book at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9A Special rates apply only for the dates listed at each hotel and are subject to availability. Check hilton.com for specific dates at each Hilton Family Hotel. Or call at 1-800-774-1500 and ask for Value Rates. Restrictions apply to these rates. ******************************** 4. CONTINENTAL.COM SPECIALS FROM ALAMO RENT A CAR Rates listed below are valid on compact class vehicles at airport locations only. Other car types may be available. Rates are valid for rentals on Saturday, December 1 with returns Monday, December 3 or Tuesday, December 4, 2001. ------------------------------- $26 a day in: Hartford, CT (BDL) $26 a day in: Newark, NJ (EWR) $26 a day in: Fort Lauderdale, FL (FLL) $26 a day in: Providence, RI (PVD) To receive continental.com Specials discounted rates, simply make advance reservations and be sure to request ID # 596871 and Rate Code 33. Book your reservation online at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9%29A or contact Alamo at 1-800 GO ALAMO. If you are traveling to a city or a different date that is not listed, Alamo offers great rates when you book online at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9%28A For complete details on these offers, please refer to Alamo's terms and conditions below. *************************************** 6. CONTINENTAL.COM SPECIALS FROM NATIONAL CAR RENTAL Rates listed below are valid on intermediate class vehicles at airport locations only. Other car types may be available. Rates are valid for rentals on Saturday, December 1 with returns Monday, December 3 or Tuesday, December 4, 2001. ------------------------------------------ $29 a day in: Hartford, CT (BDL) $29 a day in: Newark, NJ (EWR) $29 a day in: Fort Lauderdale, FL (FLL) $21 a day in: Manchester, NH (MHT) To receive continental.com Specials discounted rates, simply make your reservations in advance and be sure to request Product Code COOLUS. To make your reservation, contact National at 1-800-CAR-RENT (1-800-227-7368), or book your reservation online at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9%27A Please enter COOLUS in the Product Rate Code field, and 5037126 in the Contract ID field to ensure you get these rates on these dates. If you are traveling to a city or a different date that is not listed, National offers great rates when you book online at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9%26A For complete details on these offers, please refer to National's terms and conditions below. *************************************** CONTINENTAL.COM SPECIALS RULES: Fares include a $37.20 fuel surcharge. Passenger Facility Charges, up to $18 depending on routing, are not included. Up to $2.75 per segment federal excise tax, as applicable, is not included. Applicable International and or Canadian taxes and fees up to $108, varying by destination, are not included and may vary slightly depending on currency exchange rate at the time of purchase. For a complete listing of rules please visit: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9.%2FA ALAMO RENT A CAR'S TERMS AND CONDITIONS: Taxes (including VLF taxes up to US$1.89 per day in California and GST), other governmentally-authorized or imposed surcharges, license recoupment fees, fuel, additional driver fee, drop charges and optional items (such as CDW Waiver Savers(R) up to US$18.99 a day,) are extra. Renter must meet standard age, driver and credit requirements. Rates higher for drivers under age 25. Concession recoupment fees may add up to 14% to the rental rate at some on-airport locations. Up to 10.75% may be added to the rental rate if you rent at an off-airport location and exit on our shuttle bus. Weekly rates require a 5-day minimum rental or daily rates apply. For weekend rates, the vehicle must be picked up after 9 a.m. on Thursday and returned before midnight on Monday or higher daily rates apply. 24-hour advance reservation required. May not be combined with other discounts. Availability is limited. All vehicles must be returned to the country of origin. Offer not valid in San Jose, CA. NATIONAL CAR RENTAL TERMS AND CONDITIONS: Customer must provide Contract ID# at the time of reservation to be eligible for discounts. Offer valid at participating National locations in the US and Canada. Minimum rental age is 25. This offer is not valid with any other special discount or promotion. Standard rental qualifications apply. Subject to availability and blackout dates. Advance reservations required. Geographic driving restrictions may apply. --------------------------------------- This e-mail message and its contents are copyrighted and are proprietary products of Continental Airlines, Inc. Any unauthorized use, reproduction, or transfer of the message or its content, in any medium, is strictly prohibited. *************************************** If you need assistance please visit: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9..A View our privacy policy at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9.-A This e-mail was sent to: [email protected] You registered with OnePass Number: AK772745 TO UNSUBSCRIBE: We hope you will find continental.com Specials a valuable source of information. However, if you prefer not to take advantage of this opportunity, please let us know by visiting the continental.com Specials page on our web site at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9.%2BA TO SUBSCRIBE: Please visit the continental.com Specials page on our web site at: http://continentalairlines.rsc01.net/servlet/cc3?%7C%7E1.%2C9u%7Emqps%7B_z%7Ck1zqmpq1%7Cpr9K9.%2CA	[email protected]	[email protected]
arnold-j/deleted_items/757.	subject: CFTC commitment of traders summary for Nat Gas content: Attached please find this weeks summary of the CFTC commitment of traders data. Thanks, Bob McKinney - CFTC-NG-11-27-01.doc	[email protected]	[email protected]
arnold-j/deleted_items/758.	subject: content: Kelly Busch (from Energy Argus) asked for your contact info. Is it OK to give it to her? Email and/or cell? The information contained in this communication is confidential and proprietary information intended only for the individual or entity to whom it is addressed. Any unauthorized use, distribution, copying, or disclosure of this communication is strictly prohibited. If you have received this communication in error, please contact the sender immediately. If you believe this communication is inappropriate or offensive, please contact Ocean Energy`s Human Resources Department.	[email protected]	[email protected]
arnold-j/deleted_items/759.	subject: revised unleaded chart 11/27 content: Unleaded http://www.carrfut.com/research/Energy1/unlded43.pdf	[email protected]	[email protected]
arnold-j/deleted_items/76.	subject: RE: content: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/760.	subject: daily charts 11/27 content: The information contained herein is based on sources that we believe to be reliable, but we do not represent that it is accurate or complete. Nothing contained herein should be considered as an offer to sell or a solicitation of an offer to buy any financial instruments discussed herein. Any opinions expressed herein are solely those of the author. As such, they may differ in material respects from those of, or expressed or published by on behalf of Carr Futures or its officers, directors, employees or affiliates. ? 2001 Carr Futures The charts are now available on the web by clicking on the hot link(s) contained in this email. If for any reason you are unable to receive the charts via the web, please contact me via email and I will email the charts to you as attachments. Crude http://www.carrfut.com/research/Energy1/crude43.pdf Natural Gas http://www.carrfut.com/research/Energy1/ngas43.pdf Distillate http://www.carrfut.com/research/Energy1/hoil43.pdf Unleaded http://www.carrfut.com/research/Energy1/unlded3.pdf Jan WTI/Brent Spread http://www.carrfut.com/research/Energy1/clf-qof.pdf Jan Heat Crack http://www.carrfut.com/research/Energy1/heatcrack.pdf Jan Gas Crack http://www.carrfut.com/research/Energy1/gascrack.pdf Dec/May Heat Spread http://www.carrfut.com/research/Energy1/hoz-hok.pdf Jan/Feb Heat Spread http://www.carrfut.com/research/Energy1/hof-hog.pdf Dec Gas/Heat Spread http://www.carrfut.com/research/Energy1/huz-hoz.pdf Feb Gas/Heat Spread http://www.carrfut.com/research/Energy1/hug-hog.pdf Dec/Mar Unlead Spread http://www.carrfut.com/research/Energy1/huz-huh.pdf Nat Gas Strip Matrix http://www.carrfut.com/research/Energy1/StripmatrixNG43.pdf Nat Gas Spread Matrix http://www.carrfut.com/research/Energy1/SpreadmatrixNG43.pdf Crude and Products Spread Matrix http://www.carrfut.com/research/Energy1/SpreadmatrixCL43.pdf Scott Mollner Recomendation http://www.carrfut.com/research/Energy1/recom11-27-01.pdf	[email protected]	[email protected]
arnold-j/deleted_items/761.	subject: Nat Gas market analysis for 11-27-01 content: Attached please find the Natural Gas market analysis for today. Thanks, Bob McKinney - 11-27-01 Nat Gas.doc	[email protected]	[email protected]
arnold-j/deleted_items/762.	subject: Free Shipping Ends December 4--Shop Today content: [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Search Amazon.com for: We hope you enjoyed receiving this message. However, if you'd rather not receive future e-mails of this sort from Amazon.com, please visit the Help page Updating Subscriptions and Communication Preferences and click the Customer Communication Preferences link. Please note that this e-mail was sent to the following address: [email protected] [IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/763.	subject: Free Shipping Ends December 4--Shop Today content: [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Search Amazon.com for: We hope you enjoyed receiving this message. However, if you'd rather not receive future e-mails of this sort from Amazon.com, please visit the Help page Updating Subscriptions and Communication Preferences and click the Customer Communication Preferences link. Please note that this e-mail was sent to the following address: [email protected] [IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/764.	subject: You're Invited - to the IntercontinentalExchange User Forum content: [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/765.	subject: Techscapes & Inside Real Estate content: [IMAGE]=20 =09[IMAGE]=09[IMAGE]=09=09 [IMAGE] =09[IMAGE] [IMAGE]=09 [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [= IMAGE] [IMAGE] [IMAGE] [IMAGE][IMAGE] =09[IMAGE]=09 [IMAGE] =09=09[IMAGE]=09=09=09 =09=09[IMAGE]=09=09[IMAGE]=09 [IMAGE] [IMAGE] =09[IMAGE]=09[IMAGE] [IMAGE] ReisCast November 27, 2001= Reis - America's Source for Real Estate Investing Welcome to ReisCast,= our weekly email newsletter. The highlights of this week's edition are: = Techscapes Inside Real Estate [IMAGE] [IMAGE] 1. Techscapes = A Nation of Couch Potatoes? The current recession may have had its origins= in the implosion of dot-coms and then other tech stocks, but at least one = part of the "information sector" may be about to stage a major revival. The= entertainment industry-ranging from traditional motion pictures to video g= ames and Internet-based platforms-seems poised to enjoy strong, perhaps eve= n explosive, growth over the coming years...The real estate implications fr= om these developments may be felt nationally, but most particularly, in a s= elect handful of locales... To get the whole article, go to: http://ww= w.reis.com/learning/insights_techscapes_art.cfm?art=3D1 [IMAGE] = 2. Inside Real Estate Cap Rates Edge Higher in Damped CRE Market Currentl= y, two major forces seem to define the opportunities for buyers and sellers= in the commercial investment market: Uncertain or falling tenant demand, a= nd historically low interest rates and returns on alternative investments. = With these two forces at loggerheads, a wider-than-usual gap has appeared i= n the current ask/bid ratio. To get a sense of where cap rates stand, how b= rokerage is faring and what prospects lie ahead, Reis's Sam Truitt spoke wi= th Harvey E. Green, president and CEO of Marcus & Millichap, which last yea= r realized record sales of more than $6 billion in 34 U.S. markets... To = read the entire article, go to: Inside Real Estate at www.reis.com/learnin= g/insights_inside_re_art.cfm?art=3D1 [IMAGE] You are receiving the em= ail because you have subscribed to this list. If you would like to remove = yourself from this list, please click here and you will be removed immedia= tely! Thank you! [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] ?2001 Reis= , Inc. All rights reserved. =09[IMAGE]=09[IMAGE] [IMAGE] [IMAGE] =09	[email protected]	[email protected]
arnold-j/deleted_items/766.	subject: Great Gifts at Terrific Values, Shipped Free! content: ========================================= GIFTS they can really use, VALUES you can't resist!SHOP CHEF'S HOLIDAY GIFT STORE NOW> ========================================= Shop any of the categories below to find the perfect gift... THE YEAR'S HOTTEST GIFTS Our Top 10 List> ================ GIFTS FOR... ================The Gourmet> The Gadget Guru> The Baker> The Coffee Lover> The Chef with Everything> The Hostess> The Wine Connoisseur> The Health Nut> Gifts for a Good Cause> - Donation made to S.O.S.-A national anti-hunger organizationGifts That Pamper> =================== GIFTS BY PRICE... =================== ? Under $50 ? $50 - $100 ? $100 and up **Last Day for holiday orders is December 21st. Click for Details * http://www.chefscatalog.com/faqs.jhtml#18 ============================= ALSO AT CHEF'S... =============================SHOP CHEF'S FINALE> Save up to 75% on top brand name.SHOP OUR HOLIDAY COOKING STORE> Everything you need now for kitchen and table. _____________________________________________________________________ Free shipping offer does not apply to previous orders. Express delivery orders, heavy kitchen furniture, and products shipped directly from manufacturers do not qualify for free delivery. Available in the continental U.S. only. Not valid with other offers. Merchandise value of order must be at least $99. Feel free to forward this email to friends. Click to Refer A Friend . Friends can subscribe to ChefsCatalog.com email by sending an email to the following address and typing SUBSCRIBE in the subject line: Subscribe Our records indicate that you wish to receive email offers and updates from ChefsCatalog.com. If you would prefer not to receive future emails from us, simply reply to the following email address:Unsubscribe [IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/767.	subject: RE: content: again, asshole. -----Original Message----- From: Arnold, John Sent: Friday, November 16, 2001 11:25 AM To: Allen, Margaret Subject: RE: yea right. on what? corporate marketing? ha,ha,ha -----Original Message----- From: Allen, Margaret Sent: Friday, November 16, 2001 11:21 AM To: Arnold, John Subject: RE: maybe - call me when you're leaving. i'm actually working! -----Original Message----- From: Arnold, John Sent: Friday, November 16, 2001 11:14 AM To: Allen, Margaret Subject: RE: I think we're sneaking out early to get a beer around 3-4. Wanna come? -----Original Message----- From: Allen, Margaret Sent: Friday, November 16, 2001 10:32 AM To: Arnold, John Subject: RE: You're an asshole -----Original Message----- From: Arnold, John Sent: Friday, November 16, 2001 10:26 AM To: Allen, Margaret Subject: You're a jerk	[email protected]	[email protected]
arnold-j/deleted_items/768.	subject: Saturday 11/17 WX 4KZ content: Good Morning! Bottom line: No Changes. For the near term (1-5), we see some cool anomalies arriving into the Dakotas by Monday already, with highs in the Dakotas in the mid-30s and lows in the mid-teens.By Tuesday, Texas and the Midwest will be in the below normal category, with Dallas overnights in the mid-30s (normal low 43), Houston's low in the mid-40s (normal upper-40s) and Chicago will freeze, with a mid-20 overnight. Progressing into the Northeast by wednesday, Philly and New York will get into the below normal category, but 5 or 6 degree anomalies are most likely. Looks like a three day event as it moves easterly and then is followed by moderation into the... 6-10 Day time period, which will see a cool shot over the Midwest/East towards next weekend, moderating again by early the following week. Then, early in the... 11-15 Day time period, more cool air moves in, beginning with central cooling, then even into the Southeast. So, with normals dropping across the nation, this first cool air anomaly event arriving in the Midwest by Tuesday will elevate the nation's gas demand requirements into the 60 Bcf/d plus regime from here on through the winter. Here's the strip beginning with today: Sat 11/17 47 Bcfd Sun 11/18 52 Bcfd Mon 11/19 55 Bcfd Tue 11/20 67 Bcfd Wed 11/21 69 Bcfd Thu 11/22 65 Bcfd Fri 11/23 65 Bcfd Sat 11/24 63 Bcfd Sun 11/25 63 Bcfd Mon 11/26 65 Bcfd Tue 11/27 65 Bcfd Till tomorrow, The Weather Team	[email protected]	[email protected], [email protected], [email protected],
arnold-j/deleted_items/769.	subject: Shop Now, Ship for Free--the Holidays Are Here content: [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Search Amazon.com for: We hope you enjoyed receiving this message. However, if you'd rather not receive future e-mails of this sort from Amazon.com, please visit the Help page Updating Subscriptions and Communication Preferences and click the Customer Communication Preferences link. Please note that this e-mail was sent to the following address: [email protected] [IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/77.	subject: RE: content: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/770.	subject: Shop Now, Ship for Free--the Holidays Are Here content: [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Search Amazon.com for: We hope you enjoyed receiving this message. However, if you'd rather not receive future e-mails of this sort from Amazon.com, please visit the Help page Updating Subscriptions and Communication Preferences and click the Customer Communication Preferences link. Please note that this e-mail was sent to the following address: [email protected] [IMAGE]	[email protected]	[email protected]
arnold-j/deleted_items/771.	subject: Collapse - the most addictive game ever? content: [IMAGE]Unsubscribe at bottom [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] Click here to download FREE Collapse demo! [IMAGE] remove me privacy policy You received this e-mail because you downloaded a RealPlayer , RealJukebox , or another product from Real.com? and indicated a preference to receive special offers from RealNetworks , or you subscribed to the Special Offers e-mail category in your account area. If you do not wish to receive e-mails from us in the future, click on the "remove me" link above. RealNetworks, RealPlayer, RealJukebox, Real.com, and RealArcade are trademarks or registered trademarks of RealNetworks, Inc. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.	[email protected]	[email protected]
arnold-j/deleted_items/772.	subject: Shrek & Grinch $19.95 each! Plus, Buy 3 or more DVDs - 2 ship FREE! content: [IMAGE] [IMAGE] [IMAGE] [IMAGE] Give friends and family some gift= s they'll really enjoy - movies on DVD. We have great prices on New Release= s, Hot Pre-Orders, Special Editions, and much more. Plus, newly released hi= ts like How the Grinch Stole Christmas and Shrek: Special Edition will fit = perfectly into your own collection. [IMAGE] [IMAGE] Visit our site to = see more Universal Movie Deals: [IMAGE] [IMAGE]New Releases [IMAGE]Holiday= Movies [IMAGE]The Jurassic Park Trilogy [IMAGE]Hot Pre-Orders [IMAGE]DV= D Box Sets [IMAGE]Special Editions [IMAGE]Best of 2001 [IMAGE]Double Fea= tures [IMAGE] [IMAGE][IMAGE] Shrek: Special Edition On Sale $19.95 DVD= This 2-DVD set includes a storyboard pitch of deleted scenes, a making-of = featurette, interactive games, and more. [IMAGE]How the Grinch Stole Chr= istmas On Sale $19.95 DVD Get Jim Carrey, deleted scenes, outtakes, a spot= light on location featurette, and much more. Available 11/20/01. [IMAGE]Th= e Mummy Returns: Special Edition $20.94 DVD [IMAGE]See all New Releases = [IMAGE]The Family Man $21.45 DVD [IMAGE]See all Holiday Movies [IMA= GE] [IMAGE][IMAGE] Jurassic Park III On Sale $18.94 DVD Get over 10 hours= of special features and a FREE DVD with purchase. Available 12/11/01. [= IMAGE]The Fast and the Furious On Sale $18.94 DVD This red-hot remake feat= ures deleted scenes, a multi-angle stunt sequence, and more. Available 1/2/= 02 [IMAGE]Jurassic Park/Lost World $31.94 DVD [IMAGE]See all Jurassic Par= k Movies [IMAGE]American Pie 2 $20.94 DVD (Available 1/8/02). [IMAGE]= See all Hot Pre-Orders [IMAGE] [IMAGE][IMAGE] The Jurassic Park Trilog= y On Sale $64.94 DVD Get all three movies, making-of features, behind-the-= scenes footage, and much more. Available 2/11/01. [IMAGE]Gladiator On S= ale $22.94 DVD This 2-DVD set includes deleted scenes, a making-of document= ary, cast and crew audio commentary and more. [IMAGE]Alfred Hitchcock Coll= ection $50.95 DVD [IMAGE]See all DVD Box Sets [IMAGE]American Pie: Ul= timate Edition $23.45 DVD [IMAGE]See all Special Edition DVDs [IMAGE] = [IMAGE][IMAGE] Meet the Parents On Sale $20.94 DVD Includes deleted scene= s, hilarious outtakes, audio commentary by DeNiro and Stiller, and more. = [IMAGE]Apollo 13/Backdraft On Sale $25.95 DVD Two suspenseful hits appear= in one package, with documentaries, audio commentaries, and more. [IMAGE]= The Mexican $22.95 DVD [IMAGE]See all the Best of 2001 [IMAGE]Erin Br= ockovich/Primary Colors $25.95 DVD [IMAGE]See all Double Features = [IMAGE] [IMAGE] [IMAGE] [IMAGE] ALL Sprint PCS Wireless Phones on Sale= Sprint PCS Phones include the thinnest and lightest and the first with bu= ilt-in color PDA. Mate one to a plan with Nationwide Long Distance, Wireles= s Web Access, and more. Activate today! 2.2 Megapixel Kodak Camera for $29= 9.95! An ideal first digital camera. Take portraits and wide views with 2x= optical zoom. 8MB of built-in memory stores up to 48 shots - add a Compact= Flash card for even more storage. Only $299.95! DX3600 Dive into DVD for = less than $100 Experience the sonic and visual brilliance of DVD at a pric= e that can't be beat. Dolby Digital?/DTS? outputs deliver six-channel sound= to your compatible receiver. Full-function remote. Only $99.95! DVD100 = If you prefer not to receive any future mailings from 800.com, simply send= email to: [email protected] . Prices and availability are subject to ch= ange without notice. Quantities on some items may be limited. This email wa= s sent to [email protected] Copyright 2001, 800.com, Inc. All rights re= served. =09	[email protected]	[email protected]
arnold-j/deleted_items/773.	subject: SUPPLEMENTAL Weekend Outage Report for 11-16-01 through 11-18-01 content: ------------------------------------------------------------------------------------------------------ W E E K E N D S Y S T E M S A V A I L A B I L I T Y F O R November 16, 2001 5:00pm through November 19, 2001 12:00am ------------------------------------------------------------------------------------------------------ SCHEDULED SYSTEM OUTAGES: ARDMORE DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages. AZURIX: No Scheduled Outages. EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages. EDI SERVER: No Scheduled Outages. ENRON CENTER SOUTH DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages ENRON NORTH AMERICAN LANS: SEE ORIGINAL REPORT FIELD SERVICES: No Scheduled Outages. INTERNET: No Scheduled Outages. MESSAGING: ALSO SEEE ORIGINAL REPORT Impact: All Nahou Exchange server users Time: Sat 11/17/2001 at 5:00:00 PM CT thru Sat 11/17/2001 at 9:00:00 PM CT Sat 11/17/2001 at 3:00:00 PM PT thru Sat 11/17/2001 at 7:00:00 PM PT Sat 11/17/2001 at 11:00:00 PM London thru Sun 11/18/2001 at 3:00:00 AM London Outage: Exchange server standardization Environments Impacted: All Exchange users Purpose: Standardize all cluster nodes and bring up to current Microsoft standards. Backout: Remove upgraded files. Contact(s): Tim Hudson 713-853-9289 Impact: nahou-msdev01p nahou-msmbx01v Time: Sat 11/17/2001 at 5:00:00 PM CT thru Sat 11/17/2001 at 9:00:00 PM CT Sat 11/17/2001 at 3:00:00 PM PT thru Sat 11/17/2001 at 7:00:00 PM PT Sat 11/17/2001 at 11:00:00 PM London thru Sun 11/18/2001 at 3:00:00 AM London Outage: Database defragmentation Environments Impacted: Exchange users on nahou-msdev01p nahou-msmbx01v Storage group 3 Database 4 Purpose: To reclaim un-used drive space within the Exchange database. Backout: N A. Contact(s): Tim Hudson 713-853-9289 MARKET DATA: SEE ORIGINAL REPORT NT: No Scheduled Outages. OS/2: No Scheduled Outages. OTHER: ALSO SEE ORIGINAL REPORT Impact: EFM Accounting Time: Sat 11/17/2001 at 10:00:00 PM CT thru Sat 11/17/2001 at 11:00:00 PM CT Sat 11/17/2001 at 8:00:00 PM PT thru Sat 11/17/2001 at 9:00:00 PM PT Sun 11/18/2001 at 4:00:00 AM London thru Sun 11/18/2001 at 5:00:00 AM London Outage: Swap names of NAHOU-SQEFM01P and NAHOU-SQLAC01P Environments Impacted: EFM Accounting users Purpose: Migration of production EFM Accounting MSSQL Server from 6.5 to 2000 Backout: Contact(s): William Mallary Bob McCrory (713) 853-5749 Michael Kogotkov (713) 345-1677 Impact: CORP Time: Sat 11/17/2001 at 6:00:00 PM CT thru Sun 11/18/2001 at 9:00:00 AM CT Sat 11/17/2001 at 4:00:00 PM PT thru Sun 11/18/2001 at 7:00:00 AM PT Sun 11/18/2001 at 12:00:00 AM London thru Sun 11/18/2001 at 3:00:00 PM London Outage: CPR Environments Impacted: All Purpose: Hardware maintenance for Skywalker Backout: Contact(s): CPR Support 713-284-4175 Impact: CORP Time: Sat 11/17/2001 at 6:00:00 PM CT thru Sun 11/18/2001 at 6:00:00 AM CT Sat 11/17/2001 at 4:00:00 PM PT thru Sun 11/18/2001 at 4:00:00 AM PT Sun 11/18/2001 at 12:00:00 AM London thru Sun 11/18/2001 at 12:00:00 PM London Outage: Test/Dev general server maintenance for the following: ferrari, modena, trout, cypress, bravo Environments Impacted: ENW test and development Purpose: Established maintenance window for Test and Development Backout: None Contact(s): Malcolm Wells 713-345-3716 Impact: CORP Time: Sat 11/17/2001 at 6:00:00 PM CT thru Sun 11/18/2001 at 9:00:00 AM CT Sat 11/17/2001 at 4:00:00 PM PT thru Sun 11/18/2001 at 7:00:00 AM PT Sun 11/18/2001 at 12:00:00 AM London thru Sun 11/18/2001 at 3:00:00 PM London Outage: New disk layout for server ERMS CPR server skywalker. Environments Impacted: ERMS Purpose: Move toward new standard disk layout. Backout: If database doesn't work after restore to new layout we will roll back to the old mirrored copy and resync to that copy. Contact(s): Malcolm Wells 713-345-3716 Impact: CORP Time: Sat 11/17/2001 at 6:00:00 PM CT thru Sun 11/18/2001 at 9:00:00 AM CT Sat 11/17/2001 at 4:00:00 PM PT thru Sun 11/18/2001 at 7:00:00 AM PT Sun 11/18/2001 at 12:00:00 AM London thru Sun 11/18/2001 at 3:00:00 PM London Outage: General maintenance for ERMS CPR app server chewbacca. Environments Impacted: ERMS CPR Purpose: General maintenance and patching. Backout: Backout patches and config changes and reboot to old configuration. Contact(s): Malcolm Wells 713-345-3716 Impact: CORP Time: Fri 11/16/2001 at 5:00:00 PM CT thru Sat 11/17/2001 at 2:00:00 PM CT Fri 11/16/2001 at 3:00:00 PM PT thru Sat 11/17/2001 at 12:00:00 PM PT Fri 11/16/2001 at 11:00:00 PM London thru Sat 11/17/2001 at 8:00:00 PM London Outage: Update to new disk layout for server foxtrot. Environments Impacted: ACTA production Purpose: Move toward new standard in disk layout. Backout: Restore old disk layout restore data from disk. Contact(s): Malcolm Wells 713-345-3716 Impact: ENPOWER Time: Sat 11/17/2001 at 7:00:00 AM CT thru Sat 11/17/2001 at 12:00:00 PM CT Sat 11/17/2001 at 5:00:00 AM PT thru Sat 11/17/2001 at 10:00:00 AM PT Sat 11/17/2001 at 1:00:00 PM London thru Sat 11/17/2001 at 6:00:00 PM London Outage: Build standby database on PWRPROD1 Environments Impacted: Enpower application User Purpose: Improve system availability for Enpower Database Backout: Drop the standby database. Contact(s): Tantra Invedy 713 853 4304 Impact: EI Time: Fri 11/16/2001 at 3:00:00 PM CT thru Fri 11/16/2001 at 6:00:00 PM CT Fri 11/16/2001 at 1:00:00 PM PT thru Fri 11/16/2001 at 4:00:00 PM PT Fri 11/16/2001 at 9:00:00 PM London thru Sat 11/17/2001 at 12:00:00 AM London Outage: Decommission 3AC-17 server Room Environments Impacted: El and Azurix Purpose: Decommission 3AC-17 server Room Backout: None, must be out and installed on the 35th floor of 3AC Contact(s): Matthew James 713-345-8111 Jon Goebel 713-345-7570 Impact: CORP Time: Sat 11/17/2001 at 1:00:00 PM CT thru Sat 11/17/2001 at 5:00:00 PM CT Sat 11/17/2001 at 11:00:00 AM PT thru Sat 11/17/2001 at 3:00:00 PM PT Sat 11/17/2001 at 7:00:00 PM London thru Sat 11/17/2001 at 11:00:00 PM London Outage: Migrate VMS objects from Enpower test to production Environments Impacted: Corp Purpose: To allow production deployment of the VMS engine Backout: None. Contact(s): Charlene Fricker 713-345-3487 Impact: NAHOU-ORDB07P Time: Sat 11/17/2001 at 9:00:00 AM thru Sat 11/17/2001 at 11:00:00 AM Outage: NAHOU-ORDB07P Drive Failure. Environments Impacted: Corp trying to access dbases on the server. Purpose: To replace a bad hard drive. Backout: Restore from tape and backed up DB. Contact(s): David Devoll 713-345-8970 SITARA: No Scheduled Outages. SUN/OSS SYSTEM: No Scheduled Outages. TELEPHONY: No Scheduled Outages TERMINAL SERVER: No Scheduled Outages. UNIFY: No Scheduled Outages. ---------------------------------------------------------------------------------------------------------------------------- FOR ASSISTANCE (713) 853-1411 Enron Resolution Center Specific Help: Information Risk Management (713) 853-5536 SAP/ISC (713) 345-4727 Unify On-Call (713) 284-3757 [Pager] Sitara On-Call (713) 288-0101 [Pager] RUS/GOPS/GeoTools/APRS (713) 639-9726 [Pager] OSS/UA4/TARP (713) 285-3165 [Pager] CPR (713) 284-4175 [Pager] EDI Support (713) 327-3893 [Pager] EES Help Desk (713)853-9797 OR (888)853-9797 TDS -Trader Decision Support On-Call (713) 327-6032 [Pager]	[email protected]	Houston Outage Report@ENRON <??SHouston Outage Report@ENRON>
arnold-j/deleted_items/774.	subject: NEW WEATHER SWAPS ON THE INTERCONTINENTAL EXCHANGE content: [IMAGE] IntercontinentalExchange is pleased to announce that weather swaps trading will be included in its new version 8 release. These fixed-for-floating financial products will be cash settled on a five-day average temperature, Monday - Friday, for the current week and for the forward week. Temperatures used for the settlement of these products will be those reported by EarthSat, a widely recognized and independent source of weather data. Settlement temperatures provided by EarthSat will be available via the IntercontinentalExchange website. The hub locations for weather trades will be the primary airport weather stations at Chicago-O'Hare, Dallas-Fort Worth, New York-La Guardia, Philadelphia-International and Sacramento-Executive. The standard contract size for all locations will be $10,000 per degree Fahrenheit, with a tic increment of 0.1 degree Fahrenheit or $1,000. There are no payout limits on the contracts. The design and development of these new weather products was done under the guidance of Aquila Energy Marketing Corp., a recognized leader in weather product concepts. In addition, IntercontinentalExchange has worked with Aquila and other major weather market participants, including Reliant Energy, Mirant Americas, and El Paso Merchant Energy, to build consensus and support for these new products. To trade weather swaps you must have our new version 8 release installed on your system. An advisory with details about this new release is being sent to you by separate email. We encourage all or our users to take a serious look at the new weather products being offered by the IntercontinentalExchange. Please contact one of our following representatives to find out about the new weather products, or check back on our website product guide: Patricia Ricci : (646) 792-2624 : [email protected] Mike O'Neill : (646) 792-2626 : [email protected] Chris D'Ambrosio : (646) 792-2625 : [email protected]	[email protected]	[email protected]
arnold-j/deleted_items/78.	subject: RE: content: okay - plan on 11:45. what are you wearing - shorts or jeans? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:12 PM To: Allen, Margaret Subject: RE: sure. just call me when you get out -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:11 PM To: Arnold, John Subject: RE: I have an 11 meeting, so can we meet in the lobby at 11:45? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:44 PM To: Allen, Margaret Subject: RE: she starts at 12:12 -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 1:10 PM To: Arnold, John Subject: RE: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/79.	subject: RE: content: I have an 11 meeting, so can we meet in the lobby at 11:45? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:44 PM To: Allen, Margaret Subject: RE: she starts at 12:12 -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 1:10 PM To: Arnold, John Subject: RE: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/8.	subject: Computer Virus content: There are several new computer viruses that are spreading rapidly on the internet. The viruses target Windows computer users and arrives in e-mails with various subject lines like "Fwd:Peace BeTweeN AmeriCa and IsLaM!" The messages also contain attachments that can be directly executed by clicking on the attachment. The most prevalent virus has an attachment named wtc.exe. If you ever get an email with an attachment that has an executable file, you should never launch the attachment. At Enron, these file types are blocked automatically from entering our environment. However, if you would connect to an external email service (i.e. Hotmail, AOL, Yahoo, etc) while using an Enron computer or attached to the Enron network, you could infect our internal computing systems. If you do, the virus could cause significant issues and prevent some of our systems from working effectively. If you ever get an email that you are not sure about, simply delete the email and contact your resolution center to let them know how you obtained the message. It is much better to be safe than sorry as we will be able to track down the origin of the virus in the Enron Network. Thank you. Enron Global Technology	[email protected]	All Enron Worldwide@ENRON <??SAll Enron Worldwide@ENRON>
arnold-j/deleted_items/80.	subject: New Refined Oil Products content: Attention Oil Traders: On Friday October 12, IntercontinentalExchange will launch four new refined= oil products which will need to be manually added to portfolios: Gasoline to Heat Diff- HU 1st Line/HO 1st Line Swap Gasoline to Heat Diff- USGC Con Unl 87/USGC No.2 Heating Oil Swap Jet Fuel Crack- USGC 54 Jet/WTI 1st Line Swap Fuel Oil Crack- /WTI 1st Line Swap Please call our 24 hour Help Desk with any questions 770 738 2101 = = = = = = = = = = = = = =20 = = = = = = = = = = = = =	[email protected]	[email protected]
arnold-j/deleted_items/81.	subject: FW: content: -----Original Message----- From: "Matt Cuocci" <[email protected]>@ENRON [mailto:IMCEANOTES-+22Matt+20Cuocci+22+20+3Cmattc+40elitebrokers+2Enet+3E+40ENRON@ENRON.com] Sent: Thursday, September 20, 2001 2:47 PM To: maggi Subject: - NFL'2001.xls	[email protected]	[email protected]
arnold-j/deleted_items/82.	subject: RE: content: no, you are wearing a skirt, like me! -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 3:30 PM To: Allen, Margaret Subject: RE: I'm wearing a shirt too -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:45 PM To: Arnold, John Subject: RE: skirt -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:13 PM To: Allen, Margaret Subject: RE: jeans -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:13 PM To: Arnold, John Subject: RE: okay - plan on 11:45. what are you wearing - shorts or jeans? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:12 PM To: Allen, Margaret Subject: RE: sure. just call me when you get out -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:11 PM To: Arnold, John Subject: RE: I have an 11 meeting, so can we meet in the lobby at 11:45? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:44 PM To: Allen, Margaret Subject: RE: she starts at 12:12 -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 1:10 PM To: Arnold, John Subject: RE: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/83.	subject: Enron Mentions content: Enron to Sell Portland General to Northwest Natural (Update9) Bloomberg, 10/08/01 Northwest Natural Gas to buy Portland General for $1.8 billion Associated Press Newswires, 10/08/01 UK Pwr Mkt: Spot Dn On High Interconnector Flow Dow Jones News Service, 10/08/01 USA: NW Natural sees "double digit" earnings growth. Reuters English News Service, 10/08/01 NW Natural Gas's Portland General Buy Has No Breakup Fee Dow Jones News Service, 10/08/01 Northwest Natural's CEO on Portland General Purchase: Comment Bloomberg, 10/08/01 Enron to Sell Portland General to Northwest Natural (Update9) 2001-10-08 16:21 (New York) Enron to Sell Portland General to Northwest Natural (Update9) (Adds closing share prices in fifth paragraph.) Houston, Oct. 8 (Bloomberg) -- Enron Corp. agreed to sell Portland General Electric to Northwest Natural Gas Co. for $2.9 billion in cash, stock and assumed debt, ending a more than two-year effort to shed its Oregon utility. Enron, the largest energy trader, no longer needs Portland General to sell electricity in the West and wants to spend on more promising businesses, Chief Executive Ken Lay said in a statement. Enron bought the utility for $3.21 billion in 1997 to gain knowledge on selling power to neighboring California. ``Portland General is a 5 percent bottom-line growth rate company,'' said Anatol Feygin, a J.P. Morgan analyst who rates Enron ``buy.'' ``On wholesale and retail energy operations, Enron has had 35 percent growth in earnings before interest and taxes, and bottom-line growth of just under 20 percent.'' Shares of Enron rose $1.72, or 5.4 percent, to $33.45. Northwest fell 42 cents to $22.99. Enron will get less than it hoped from the sale, though spokeswoman Karen Denne said the Houston-based company expects to break even. A November 1999 agreement to sell the utility to Sierra Pacific Resources of Nevada for $3.1 billion fell through in April of this year because California banned sales of power plants serving the state. Regulators had required Sierra Pacific to sell a stake in a plant that sells power to California as a condition of its purchase of Portland General. Oregon Regulators Both Northwest and Portland General are based in Portland, Oregon, which should make it easier for Enron to win clearance of the sale. Oregon regulators can be expected to approve the purchase in as little as nine months, Northwest Chief Executive Richard Reiten said. ``No other combination of companies could achieve as much political, regulatory, and general support of the citizens,'' Reiten said. ``We operate in essentially the same geographic area.'' Northwest, a gas utility, will pay $1.55 billion in cash, $200 million in preferred stock and $50 million in common stock, Enron said. Northwest will assume $1.1 billion in debt and give $75 million in customer discounts previously agreed upon by Enron. Northwest has 525,000 natural-gas customers in Oregon and Washington. Portland General has 730,000 customers in Oregon. Over the past 10 years, Lay has transformed Enron from a gas pipeline operator into a company that gets most of its profit growth from commodities trading. Enron no longer wants to own expensive assets such as power plants that are under the control of regulators, who limit profitability and often make the assets difficult to sell, analysts say. ``This is a sign Ken Lay is tightening up the ship,'' said Mark Baskir, manager of the $15 million Strong Energy Fund, which holds 2,400 Enron shares. ``I feel better about the stock now.'' Retail Sales Enron's road to becoming a top energy trader in California has been bumpy. It delayed attempts to sell electricity to California residential customers in 1999, saying the state's deregulation law made it impossible to profit from small power sales. It transferred its retail electricity sales business in all states to NewPower Holdings Inc., a separately traded company formed by Enron in October 2000. When power prices in western state's soared late last year and early this year, some utilities stopped paying for wholesale power. Enron has estimated it's owed as much as $500 million for energy sales in California. California's two largest utilities, PG&E Corp.'s Pacific Gas & Electric and Edison International's Southern California Edison, are insolvent after racking up billions in debt buying power at prices far exceeding what state officials would allow them to pass to customers. California Battle California officials have accused Enron and other power traders of manipulating the state's market. Enron also has struggled with Oregon regulators. It was forced to cut power prices to Portland General's customers by $141 million over eight years, more than double what the company had anticipated when it bought the utility. Oregon also rejected Enron's plans to sell its utility's 14 generating plants. Enron will keep its stake in Northwest for at least 30 months, the company said in a statement. It will have voting rights limited to 4.9 percent of Northwest's common stock and will have representation on Northwest's board. Northwest said the sale is expected to close this quarter and add to earnings next year. Northwest expects to maintain its annual dividend of $1.25 a share through this year. Job cuts are planned, Northwest said, without saying how many positions would be eliminated. Northwest said it won't renegotiate union contracts. Merrill Lynch and Credit Suisse First Boston will arrange loans to finance the cash portion of the purchase, Northwest said. Credit Suisse advised Enron on the sale. Enron last week agreed to sell oil and gas fields in India to the U.K.'s BG Group Plc for $388 million. In May, the company withdrew from a gas-pipeline project in Qatar. Northwest Natural Gas to buy Portland General for $1.8 billion By WILLIAM McCALL AP Business Writer 10/08/2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. PORTLAND, Ore. (AP) - Northwest Natural Gas said Monday it will buy Portland General Electric for $1.8 billion in a deal that will combine the largest natural gas and electric utilities in Oregon. The purchase comes about four years after Enron Corp., one of the largest energy companies in the nation, paid $3.2 billion for Portland General Electric in a bid to expand into the Pacific Northwest and California. But the slow pace of deregulation in Oregon and the California energy crisis prompted Houston-based Enron to start shopping for another buyer shortly after the takeover. Northwest Natural Gas said it expects to close the purchase late next year, pending approval by regulators and its shareholders. Enron will receive $1.55 billion cash and $350 million in securities. The deal will create a Portland-based holding company with $5 billion in assets and more than 1.25 million customers. The new company would own more than 2,000 megawatts of generation, 26,000 miles of electric transmission and distribution lines and 12,000 miles of gas mains. Northwest Natural Gas Chairman Richard G. Reiten said the deal would "help ensure that assets critical to Oregon's economy and environment will be locally-owned." There will be an undetermined number of job cuts, he said, although all union contracts will be honored. The deal brought immediate criticism from one of the state's leading consumer watchdog groups. Bob Jenks, executive director of the Citizens Utility Board, said he was concerned about the heavy debt Northwest Natural Gas will carry under the deal and the gas company's recent efforts to lobby the Legislature to bypass regulators. "They've tried to politicize rate proceedings," Jenks said. "If that's going to happen, and PGE rate cases are fought out in the Legislature and the governor's office, then I don't think that's going to be in the interest of PGE customers." Analysts said the deal makes sense because the two utilities can cut a lot of costs in their overlapping service areas. But Dan Fidell of A.G. Edwards & Sons said analysts and investors also are wary of the heavy debt load on NW Natural. "Their balance sheet is going to suffer, at least in the near term," Fidell said. "They're probably looking at downgrades in their credit rating." Enron earlier attempt to sell Portland General Eelctric fell through last March. It has seen stock prices fall in recent months as it moved into investments outside its core business, including an Internet company that took a beating in the stock market. But in morning trading Monday, Enron shares rose 77 cents to $32.50, which analysts said was partly due to heavier investment in strategic energy companies following news about the U.S. attack on terrorist outposts in Afghanistan. --- On the Net: Enron: http://enron.com Northwest Natural Gas: http://northwestnatural.com Portland General Electric: http://www.portlandgeneral.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. UK Pwr Mkt: Spot Dn On High Interconnector Flow 10/08/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) LONDON -(Dow Jones)- U.K. spot electricity prices Monday were down on a high volume of power from the intercontinental interconnector despite cooler weather, while trade in forward contracts was too thin to site a trend, traders said. Helping prices fall was the ready availability of cheap power through the in terconnector. All available capacity on the interconnector was used on Monday, c ompared with only half on Friday. Also influencing prices was that, like last week, Enron started the day shor t, and then tried to push prices down before buying in large volumes, traders sa id. "Basically it looks like Enron have gone into the winter short, thinking tha t pre-NETA jitters would make everyone else go long, and so far it looks like th ey're winning that bet," said a trader. No one at Enron was immediately available for comment. Day-ahead base load traded at GBP17-GBP17.35/MWh, down from Friday's trading for Monday base load at GBP17.30-GBP17.70/MWh. Day-ahead peaks traded at GBP18.50-GBP19.50/MWh. Day-ahead extended peaks traded at GBP19.30-GBP19.50/MWh. Weekend base load traded at GBP16.30/MWh, down from Friday's prices for last weekend at GBP17/MWh. Week 42 traded at GBP17.50-GBP17.55/MWh, down from Friday's prices at GBP17. 70-GBP17.75/MWh. Enron's visible buying in the spot market is all the more striking given tha t its own 2000MW facility at Teesside is runing at just over half its maximum ou tput. This likely reflects the high price of natural gas relative to electricity, a trader reckoned. Plant has been in flux recently with a 400MW unit at Seabank II struggling t o maintain consistent output, while British Energy's 581MW unit at Heysham 1 cam e back online on Friday, and was generating 500MW by Monday afternoon. Both 535M W units at Dungeness B remain offline, while traders expect at least one to come back online soon. Forward market prices were down beginning with November, but not trading in volumes large enough to identify a trend. On the U.K. Power Exchange, within-day prices peaked during settlement perio d 39 at GBP36.95/MWh. Lowest prices were for settlement periods 7-11 at GBP1/MWh . Volume was 12,412MWh in 24,824 contracts. On the Automated Power Exchange, the average weighted day-ahead price was GBP18.63/MWh, up from Friday's price of GB P16.01/MWh. The Meteorological Office expects Tuesday's temperatures to be 2 degrees Cel sius warmer in the southeast and Yorkshire and Lincolnshire. Countrywide, temper atures are forecast to in line with historical norms. The Balancing Mechanism Reporting System said demand will peak Tuesday at 38 ,094 MW, with off-peak demand hitting a low of 25,908 MW. Demand peaked Monday a t 39,094 MW. The following forward contracts traded Monday. Figures are in GBP/MWh: Contract Monday Friday Nov 2001 base 19.33-41 19.50 Jan base 21.50-21.66 --- Apr base 17.88-18.00 --- Winter 2002 base 20.10 --- Summer 2002 base 17.44 17.50 Summer 2003 base 17.58-17.59 17.60 Q1 2001 19.85-19.92 --- Winter 2003 20.38 --- -By Sarah Spikes, Dow Jones Newswires; +44-(0)20-7842-9345; sarah.spikes@dowj ones.com -0- 08/10/01 17-52G Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: NW Natural sees "double digit" earnings growth. 10/08/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Oct 8 (Reuters) - Northwest Natural Gas Co. said on Monday that the acquisition of Portland General Electric from Enron Corp would enhance its earnings by "double digits" from the first year. Earlier on Monday Northwest said it was paying $1.8 billion for the firm and the deal was expected to completed by last quarter of next year. Speaking to financial analysts on a conference call after announcing the deal, executives said the deal had all necessary financing and a new holding company which will be created to accommodate the assets will have debts of up to 80 percent of its capital structure. Northwest said it expects the new holding company to receive an investment-grade credit rating after three years. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. NW Natural Gas's Portland General Buy Has No Breakup Fee By Christina Cheddar 10/08/2001 Dow Jones News Service (Copyright (c) 2001, Dow Jones & Company, Inc.) Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Northwest Natural Gas Co.'s (NWN) planned acquisition of Enron Corp.'s (ENE) Portland General Electric Co. unit doesn't contain a provision for a breakup fee, Northwest officials said Monday during a conference call. Earlier, Northwest Natural, of Portland, Ore., and Enron, of Houston, announced the companies agreed to the terms of the sale. The transaction was anticipated since Friday when the companies confirmed a Wall Street Journal that the two were talking. Under the terms of the planned sale, Northwest will acquire the Enron unit for $1.55 billion in cash and $250 million in seller-financing securities. Northwest also agreed to cancel a $75 million payment obligation from Enron to Portland General that was related to Enron's purchase of Portland General in 1996. Northwest also is assuming $1.1 billion in existing Portland General debt and preferred stock. During the conference call, Northwest officials said they expect the acquisition to close in the fourth quarter of 2002, following approval of Northwest's shareholders and regulatory agencies, including the Federal Energy Regulatory Commission. The company has already secured the necessary financing, officials said. Northwest shares recently traded at $23.10, down 31 cents, or 1.3. On Friday, the stock closed down 9.9% to $23.41 in anticipation of the acquisition. Enron shares, meanwhile, have gained $1.41, or 4.4%, to $33.14. Enron had previously agreed to sell Portland General to Sierra Pacific Resources (SRP) for $3.1 billion, but the deal was called off six months ago, in part because of complications stemming from the California power crisis. Enron's decision to sell Portland, an electric utility with $5 billion in assets and $3.9 billion in enterprise value, is an example of Enron's strategy to sell its physical assets and focus on its energy trading activities. Northwest Natural Gas Chairman and Chief Executive Richard Reiten said the acquisition of Portland General will have "solid accretion" under old accounting rules, and "double-digit accretion" under the new accounting rules pertaining to the treatment of goodwill. Under the former accounting rules, goodwill was amortized to expense. Reiten didn't provide any specific estimates for the earnings of the combined companies. In an interview, Reiten said the ability of the transaction to increase the combined company's earnings potential will be helped by a number of factors including the companies' overlapping service areas and combined customer bases. Reiten expects to consolidate customer billing, call centers and meter reading. Prior attempts by Northwest and Portland General to initiate joint meter reading for about 350,000 customers already have yielded about $1 million in cost savings, Reiten said. Also, the acquisition gives Northwest the ability for non-speculative trading around the combined company's natural gas and electric assets, he added. "The opportunities are exceptional for a utility in the Northwest. That's why we are so confident about the ability of this transaction to add to the bottom line," said Reiten, who served between 1989 and 1996 as the company's president and chief operating officer and as a member of its board. The combination will result in staff reductions, but Reiten said he couldn't quantify how many. He said some of the reductions would occur through early retirement incentives and though attrition. -Christina Cheddar, Dow Jones Newswires; 201-938-5166; [email protected] Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Northwest Natural's CEO on Portland General Purchase: Comment 2001-10-08 13:36 (New York) Portland, Oregon, Oct. 8 (Bloomberg) -- Richard Reiten, chief executive of Northwest Natural Gas Co., comments on the company's agreement to buy Portland General Electric Co. from Enron Corp. for $2.8 billion in cash, stock and assumed debt. The transaction would consolidate the natural gas and electric utilities in Portland, Oregon. Enron bought Portland General for $3.1 billion in 1997. A 1999 agreement to sell the utility to Sierra Pacific Resources of Nevada for $3.1 billion failed in April because of regulatory delays. How Northwest, which has a market capitalization of about $580 million, will finance the $2.8 billion purchase: ``We will issue $150 million of common equity at close. Our Financial plan calls for another $150 million, three years out, in 2005.'' The company also expects to borrow $1.4 billion, and it will assume $1.1 billion in Portland General's debt. On regulatory approval: ``We expect a nine-month to 12-month regulatory approval period. Our first full year as a combined company would be 2003. We expect to begin paying down debt that first full year, and we expect double-digit accretion to earnings the first full year. ``No other combination of companies could achieve the efficiencies these companies can, because we operate in essentially the same geographic area. No other combination of companies could achieve as much political, regulatory and general support of the citizens.'' On potential cost savings: ``We expect significant efficiencies. Common meter reading, common call centers (customer service). All support services and administrative functions that are duplicated, we can bring them together. ``We have a wonderful match of the gas utility's interstate pipeline and gas storage that can be used to enhance the gas-fired generation facilities of Portland General. ``We have a storage field 15 miles from a 550-megawatt generating plant. We'll be able to trade around those assets, in non-speculative trading, something that Portland General has become very good at under its ownership by Enron. Those assets will enhance trading to bring costs down for the gas-fired generation and give us more options.'' On the investment profile of the holding company that will be formed to own the two utilities: ``We see ourselves as a strong, combination utility with a good, secure dividend, a fair price paid for our assets, and good growth in earnings. We're confident we'll get regulatory support for our structure.''	[email protected]
arnold-j/deleted_items/84.	subject: RE: content: oh, oh and the makeup and wig too! -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 5:36 PM To: Allen, Margaret Subject: RE: maybe after the game. -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 5:20 PM To: Arnold, John Subject: RE: no, you are wearing a skirt, like me! -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 3:30 PM To: Allen, Margaret Subject: RE: I'm wearing a shirt too -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:45 PM To: Arnold, John Subject: RE: skirt -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:13 PM To: Allen, Margaret Subject: RE: jeans -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:13 PM To: Arnold, John Subject: RE: okay - plan on 11:45. what are you wearing - shorts or jeans? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:12 PM To: Allen, Margaret Subject: RE: sure. just call me when you get out -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:11 PM To: Arnold, John Subject: RE: I have an 11 meeting, so can we meet in the lobby at 11:45? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:44 PM To: Allen, Margaret Subject: RE: she starts at 12:12 -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 1:10 PM To: Arnold, John Subject: RE: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/85.	subject: TRV Notification: (NG - PROPT P/L - 10/08/2001) content: The report named: NG - PROPT P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=11&report_name=NG+-+PROPT+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y&current_efct_date=10/08/2001>, published as of 10/08/2001 is now available for viewing on the website.	[email protected]	[email protected], [email protected], [email protected],
arnold-j/deleted_items/86.	subject: TRV Notification: (NG - Price P/L - 10/08/2001) content: The report named: NG - Price P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=10&report_name=NG+-+Price+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y&current_efct_date=10/08/2001>, published as of 10/08/2001 is now available for viewing on the website.	[email protected]	[email protected], [email protected], [email protected],
arnold-j/deleted_items/87.	subject: RE: content: I was KIDDING - that's all your supposed to do at a baseball game. You aren't supposed to watch the game - your supposed to drink beer and eat hot dogs! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 6:09 PM To: Allen, Margaret Subject: RE: Do you want to drink beer? I'll work on sneaking a bottle of Opus in otherwise. -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 6:08 PM To: Arnold, John Subject: RE: Are we gonna drink beer? I'm not really a beer drinker. -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 5:53 PM To: Allen, Margaret Subject: RE: I never knew your fantasies... -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 5:41 PM To: Arnold, John Subject: RE: oh, oh and the makeup and wig too! -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 5:36 PM To: Allen, Margaret Subject: RE: maybe after the game. -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 5:20 PM To: Arnold, John Subject: RE: no, you are wearing a skirt, like me! -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 3:30 PM To: Allen, Margaret Subject: RE: I'm wearing a shirt too -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:45 PM To: Arnold, John Subject: RE: skirt -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:13 PM To: Allen, Margaret Subject: RE: jeans -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:13 PM To: Arnold, John Subject: RE: okay - plan on 11:45. what are you wearing - shorts or jeans? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:12 PM To: Allen, Margaret Subject: RE: sure. just call me when you get out -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:11 PM To: Arnold, John Subject: RE: I have an 11 meeting, so can we meet in the lobby at 11:45? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:44 PM To: Allen, Margaret Subject: RE: she starts at 12:12 -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 1:10 PM To: Arnold, John Subject: RE: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/88.	subject: RE: content: Are we gonna drink beer? I'm not really a beer drinker. -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 5:53 PM To: Allen, Margaret Subject: RE: I never knew your fantasies... -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 5:41 PM To: Arnold, John Subject: RE: oh, oh and the makeup and wig too! -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 5:36 PM To: Allen, Margaret Subject: RE: maybe after the game. -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 5:20 PM To: Arnold, John Subject: RE: no, you are wearing a skirt, like me! -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 3:30 PM To: Allen, Margaret Subject: RE: I'm wearing a shirt too -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:45 PM To: Arnold, John Subject: RE: skirt -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:13 PM To: Allen, Margaret Subject: RE: jeans -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:13 PM To: Arnold, John Subject: RE: okay - plan on 11:45. what are you wearing - shorts or jeans? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:12 PM To: Allen, Margaret Subject: RE: sure. just call me when you get out -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:11 PM To: Arnold, John Subject: RE: I have an 11 meeting, so can we meet in the lobby at 11:45? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:44 PM To: Allen, Margaret Subject: RE: she starts at 12:12 -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 1:10 PM To: Arnold, John Subject: RE: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/89.	subject: RE: content: skirt -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:13 PM To: Allen, Margaret Subject: RE: jeans -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:13 PM To: Arnold, John Subject: RE: okay - plan on 11:45. what are you wearing - shorts or jeans? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 2:12 PM To: Allen, Margaret Subject: RE: sure. just call me when you get out -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 2:11 PM To: Arnold, John Subject: RE: I have an 11 meeting, so can we meet in the lobby at 11:45? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:44 PM To: Allen, Margaret Subject: RE: she starts at 12:12 -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 1:10 PM To: Arnold, John Subject: RE: What time does the game start? -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 1:02 PM To: Allen, Margaret Subject: RE: my little junior league girl. so sweet. let's leave around 1130ish -----Original Message----- From: Allen, Margaret Sent: Monday, October 08, 2001 12:54 PM To: Arnold, John Subject: RE: Yippee! I'm in! What time do you want to go? I have volunteer work tomorrow night starting at 6pm...so I'll have to run off around 5:30. I'm sooo excited! Who all is coming? Yippee! MSA -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 10:35 AM To: Allen, Margaret Subject: want to play hookie and go to the bb game tomorrow at noon?	[email protected]	[email protected]
arnold-j/deleted_items/9.	subject: Ola content: How you doing? Have you been following Heffner? Very sad about the Carr people in NY. But his technical analysis is waaay off.	[email protected]	[email protected]
arnold-j/deleted_items/90.	subject: Yahoo Instant Messaging ID's content: We know that a lot of you use the Yahoo Instant Messaging. Please send me your Yahoo Instant Messaging ID so we may add you to the list. Thanks. Scott Scott Oblander 312-762-1015 312-762-1014 fax Carr Futures 150 S. Wacker Suite 1500 Chicago, IL 60606	[email protected]	[email protected]
arnold-j/deleted_items/91.	subject: RE: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT content: porsche boxster (maybe the bmw one) instead or 5000 they raffle a car...hahahaha johnny..only exempt group is egm crude and products which keeps hiring and hiring also dont you think it was about time there was one fundamentals group where all information was shared and disseminated to trading -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 11:53 AM To: Fraser, Jennifer Subject: RE: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT they're giving away a porsche boxster or a cardboard boxcutter? -----Original Message----- From: Fraser, Jennifer Sent: Monday, October 08, 2001 10:50 AM To: Arnold, John Subject: RE: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT that means nothing..uk is giving away boxter for new employees ans slicing 10% at same time -----Original Message----- From: Arnold, John Sent: Monday, October 08, 2001 11:48 AM To: Fraser, Jennifer Subject: RE: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT no way. we're still paying $5000 for new employee referrals -----Original Message----- From: Fraser, Jennifer Sent: Monday, October 08, 2001 10:18 AM To: Arnold, John Subject: 25% ACROSS THE BOARD REDUCTION IN ENE HEADCOUNT YA HEARING ANYTHING ON THIS GEORGE DOWN--CRUDE FLOOR EVACUATED AND BROUGHT BACK	[email protected]	[email protected]
arnold-j/deleted_items/92.	subject: RE: content: I think it's spelled Gaetien and I would like to see those guys, so count me in if it happens.	[email protected]	[email protected]
arnold-j/deleted_items/93.	subject: FW: Ospraie swaption content: hi.. just so you know exactly what happened here.. ospraie sold us a 4.70 swaption.. exercisable into a swap.. expiry 3/27/01.. 5/month cal02 on 3/27/01.. market close is 4.78.. we called Mike Maggi.. asked if he was exercising swap.. yes, he was we asked if we had to do anything in the system.... no was the reply. we call ospraie.. tell them we exercised the swap. reconciling position report with ospraie for the hundreth time this month.. notice we are out 5/month on swaps... we had not previously been pulling deals from the system... just going by deal tickets. we go through system for a week.. can not find deal.. that is where we are now. deal needs to be found or recreated. if you have some time (or if you like slow torture).. read my other note.. better news coming.. promise. -----Original Message----- From: Abramo, Caroline Sent: Sun 10/7/2001 9:32 AM To: Bailey, Derek; Nelson, Michelle Cc: Dyk, Russell; Zivic, Robyn Subject: Ospraie swaption Errol- A swap between Enron and Tudor for Cal02 at 4.70 must be booked as soon as we figure out that there is no possibility it is in the system. Derek/Michelle- this deal not being included in the system should be throwing off Ospraie's MTM. This swap is at 4.70.. they are short 60 contracts..currently Cal02 is around $3.. which should result in $1M more positive P&L for Ospraie and $1M less for us. This must be settled first thing Monday. Caroline	[email protected]	[email protected]
arnold-j/deleted_items/94.	subject: Back office issues content: Fred- There are a number of issues we need to address with back office procedures immediately. We are losing money on avoidable problems and gaining a bad reputation in the market. Lets get Derek and Michelle together Tuesday afternoon. 2 of our counterparties are writing letters of complaint.. here's a sample of some of the quotes we have heard from the 10 counterparties we have added in the last 6 months. "I shouldn't have to spend my time decomposing the invoices and confirmations you send out" "It has been 10 days since we traded and we haven't received a shred of paper to give us the details of the trade" "We are being told in a confirm something different than we are being invoiced for" "We did not trade 300 contracts per day, it was per month - do you guys even think before you type" "I am a CFO and an accountant and I can't decipher what you are trying to confirm here" From a business dinner where a client of ours was speaking casually to large industrials and endusers. One, upon the mentioning of B2B exchanges said "they WILL NOT ever trade on EOL again because the backoffice procedure was such a nightmare.. they couldn't rely on the accuracy or timeliness of the confirm. This was a captive client who and needs to trade... who will not show us their flow again. The latest is the most disturbing: "we just want to do a small trade to test your system. We have heard it is a nightmare but want to see for ourselves - I mean how difficult can it be to book the purchase of 50 lots of crude" And still 5 days later they do not have one paper to show the details, not one phone call to confirm the trade...nothing. We even warned the BO that this was a new customer and to make best eforts to make sure the process runs smoothly and efficiently. Well, clearly we failed We do not understand what is going on in the back office. Is it that they are too disconnected from our daily operations to understand how integral their accurracy is to our business? Is there too much turnover? How are they trained? Who is in charge of the "backoffice"? There seems to be a different manager for every step of the process.. who co-ordinates all their efforts? Does anyone care? Ok.. I'll stop.. For our part, we have Michelle coming up to NY for a week in December (we wanted this to happen as soon as she started but did not work for her). We have to stop this before we lose clients (which we will). All the problems are being caused by the following: 1. Our inability to generate an accurate position report for our clients. This has already cost us money this year. Our clients do 10 trades a day.. they are constantly in and out of positions.. it is imperative that we get these right. As well, this report is our ONLY check to make sure deals are entered and entered correctly into the system. There are hundreds of books at Enron. We have postions on with dozens of them. We currenttly do not have an automated mechanism to pull deals from every book in one shot. We have to select books one by one.. this method will always result in books being ommmitted given our deal flow. Michelle is in charge of this process. We need a IT person on this yesterday. Michelle is spending most of her day verifying the validity of the report she generates. Robyn, Russell, and I check it everyday.. there are always mistakes. 2. There is a breakdown in the backoffice functions after Michelle collects the tickets we write and verbally confirms them. There is no check after they have been imput. There are ALWAYS imput errors. Michelle needs to check every deal after its entered into the system going forward. We also have NO set procedures for the bookings of deals. We have no idea where our job ends and the book admin's starts.. for non standard deals like gas dailies and swaptions we need to know the exact process from start to finish. 2a. Confirms are sent immediately after deals are entered.. what if deals are imput incorrectly? the confirm goes out anyway resulting in mass confusion at the client. Going forward, confirms need to be delayed until we can confirm that everything about the deal is correct. 2b. Invoicing.. there have been dozens of occassions where the amounts we are invoicing do not match the deals done.. 3. EOL- We are pushing hard to get counterparties on here.. we have signed Renaissance up (a 10B program fund) but I shudder to see how EOL will fair at these tasks. 4. Credit- All of our clients are margined. If deals are in the system incorrectly, the wrong MTM goes to the client.. another mis-match. We work closely with credit since we need to collect initial margin from some clients.. this amount changes daily- we need someone who can get on the phone with clients and explain these numbers through.. again, we are doing this now.	[email protected]	[email protected]
arnold-j/deleted_items/95.	subject: content: john did you talk to mike. is he okay with my condition. current 1085 all 150 balt -3.5 sd -3 phili -14 atl -3 cinci +5 minn +3.5 ne +9 ne/mia over 35 gb +3 oak -18 car +7	[email protected]	[email protected]
arnold-j/deleted_items/96.	subject: RE: wheres the love? content: well the mkts changed a bit since this writing. im more neturalish now i guess. suprised about the cash strongth. and i guess it doesnt mattr CUZ YOU DONT ANSWER YOUR EMAILS ANYWAY. regards > -----Original Message----- > From: LaFontaine, Steve > Sent: Friday, September 21, 2001 4:40 PM > To: John Arnold (E-mail) > Subject: whats up young man? > > johnny hope all is well. is ok here. new york a little stranger than > normal for obvious reasons.. wwe're trying to get back to normal. pretty > stressful cupla weeks. business has been pretty good(trading anyway) in > natgas and oil. certainly have been some changes in natgas fundamentals > but too littl too late im afraid to get bullish . market sucks and the > newest shock to macr economics im starting to think are mitigating what > mite have been some postive bullish changes like gas/oil relationship and > gas shut ins. looks shitty i think. im not as short as ive been but > starting to think this witer is waaay too high priced. just funtction > timing i guess. i sold a few march aprils again. just doesnt fit the curve > and i think 80% probabitly we end march with over 1.3 tcf in the ground. > wud keep things ugle for awhile. > anyway curious your thots as always. also wanted to say hi.have a good > weekend	[email protected]	[email protected], [email protected], [email protected]
arnold-j/deleted_items/97.	subject: simmons expects an upward aga revision content: -----Original Message----- From: Scott, Eric Sent: Friday, October 05, 2001 8:55 AM To: Fraser, Jennifer Subject: FW: Morning Notes -----Original Message----- From: [email protected]@ENRON [mailto:[email protected]] Sent: Friday, October 05, 2001 7:42 AM To: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Scott, Eric; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Bradley, Michael W.; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected] Subject: Morning Notes Yesterday's move in energy probably the most interesting thing to talk about today. While the move from below 60 in OSX makes sense from valuation, timing still very suspect. In order of importance we would attribute the move to: Broader Mkt Commodities Firmness Geo-political situation Shrort Covering FEAR OF MISSING MOVE OFF BOTTOM Resistance levels: XNG right here. OSX 75ish Int'l Rig Count + 10 to 766 - We see a stabilization at this level in the world wide rig count. SII - had conversation w/ mgmt. Sept. business actually better than Aug. (Unlike BJS). They do expect downtick, and have seen lower utilization at bit plant.Additionally, they have repurchased stock. We do expect AGA to revise (upward) the 66b injection reported yesterday.	[email protected]	[email protected]
arnold-j/deleted_items/98.	subject: not much of rally on afghan bombing content: brent puked it out pretty hard on friday...probably as good as it gets to sell this puppy for your benefit make sure you get someone to go back and look closely at relative storage levels and prices levels for all btus in 1998 relationahips as you recall get bizarre on the lower end of the spectrum...it's a good couple of graphs to keep around 1- all stocks as a% full chart 2-btus equi chart 1vs2 1vs diffs in #2 If i could access this info i'd send it...but enron systems being what they are it takes hours to connnect to houston drive	[email protected]	[email protected]
arnold-j/deleted_items/99.	subject: Final Schedule - Monday, October 8, 2001 - David Goldman content: Attached please find the following documents: Thank you, Lydia Delgado x3-9338	[email protected]	[email protected], [email protected], [email protected],
arnold-j/dell/1.	subject: Dell and Continental Status content: After our meeting with Dell on 10/27, I sent a request to Charlie Ball (works for Kip) for detailed power data from TXU. Charlie delegated the task of getting this data to Randy Don Carlos, who has yet to return any of my calls to update the status of the request. Charlie Ball left me a message this morning indicating that Randy Don Carlos was leaving Dell at the end of the month. He indicated that he will get the information to me as soon as he can. I'm not sure, but it seems that no one has sent the request to TXU yet. TXU generally will send out data within 1-2 weeks of a request. It has now been 6 weeks since we asked Dell for the data. Assuming Charlie actually gets someone to send the data request to TXU, we should get something by the end of the year. Similarly, Continental has not yet sent over data that they were to request from HL&P. I talked with someone in Mark's group on 12/4, and she indicated that they had the data, but their real estate group wanted to review it before they sent it to us. On this one also, it is unlikely that any transaction will get done in this calendar year. Please call if you have any questions.	[email protected]	[email protected], [email protected]
arnold-j/discussion_threads/1.	subject: content: Hey : Just wanted to see if you're doing anything tonight... Any interest in getting dinner? John	[email protected]	[email protected]
arnold-j/discussion_threads/10.	subject: content: Please approve Larry May for a trader id on EOL for "pipe options" book for US gas. Thanks, John 3-3230	[email protected]	[email protected]
arnold-j/discussion_threads/100.	subject: content: if you have a minute sometime today, please stop by. john	[email protected]	[email protected]
arnold-j/discussion_threads/101.	subject: content: I spoke to Alfred Pennisi from MG today. MG clears their own trades and maybe some for other customers. He indicated that his cost for clearing is $3.05 round turn. If this is accurate, we need to evaluate whether clearing ourselves and issuing cp every night is less expensive than paying a higher clearing rate and getting access to financing. This is a question I hope your analysis of the true cost of clearing will answer. Also, fyi, over the past two days I have done two 6,000 lot EFP's with El Paso under the same structure I explained to you previously whereby long futures are transferred from his account to mine to lower initial margin costs.	[email protected]	[email protected]
arnold-j/discussion_threads/102.	subject: content: Dave: A couple things about the limit orders: 1: When a customer opens up the limit order box, I think the time open should default to 12 hours. We want the orders open as long as possible. Now, it is more work to keep the order open for 12 hours than for 1 hour. Traditionally, limit orders are a day order, good for the entire trading session unless specified otherwise. 2. Today Pete had 13,000/ day on his bid because he was hit for small size. When I tried to place a limit order, the quantity had to be in 5,000 increments of 13,000 (i.e. 3000, 8000, 18000...). I could not overwrite the quantity to be 15,000. 3. Everytime a limit order is placed, an error message occurs on the system saying error trade, price not available. 4. Is there a way to modify a limit order, such as changing the price, without canceling it and resubmitting a new one? If not, this would be a valuable feature. Thx, John	[email protected]	[email protected]
arnold-j/discussion_threads/103.	subject: content: Greg: The guy from MG whom I spoke to about clearing was Alfred Pennisi, VP of Operations. He's out of NY. He indicated his clearing costs were $3.10 versus the $4.50-5.00 I'm paying now.	[email protected]	[email protected]
arnold-j/discussion_threads/104.	subject: content: Jeff: Man is looking for money again to hold them over for yearend. Who do I need to talk to? john	[email protected]	[email protected]
arnold-j/discussion_threads/105.	subject: We need your feedback regarding the demonstrations you attended. content: You're not done yet big boy. ---------------------- Forwarded by John Arnold/HOU/ECT on 09/19/2000 05:34 PM --------------------------- Julie Pechersky 09/19/2000 02:31 PM To: John Arnold/HOU/ECT@ECT, Brian Hoskins/HOU/ECT@ECT, John L Nowlan/HOU/ECT@ECT, Douglas S Friedman/HOU/ECT@ECT, David J Vitrella/HOU/ECT@ECT, Selena Gonzalez/HOU/ECT@ECT, Madhur Dayal/HOU/ECT@ECT, Reza Rezaeian/Corp/Enron@ENRON, Rogers Herndon/HOU/ECT@ect, Anna Santucci/NA/Enron@Enron, David J Botchlett/HOU/ECT@ECT cc: Subject: We need your feedback regarding the demonstrations you attended. We really appreciate your attendance of the demonstrations of Reuters, Bridge and Globalview software. Please take a minute to fill out the attached feedback form so that we will know what you thought of each application. Return the completed form to me. Thanks again for you time! Julie 39225	[email protected]	[email protected]
arnold-j/discussion_threads/106.	subject: content: COO's: Do either of you have an objection to using Cantor as an OTC broker?	[email protected]	[email protected], [email protected]
arnold-j/discussion_threads/107.	subject: Electricity and Natural Gas hedging content: ---------------------- Forwarded by John Arnold/HOU/ECT on 09/25/2000 07:23 AM --------------------------- Eric Thode@ENRON 09/22/2000 09:28 AM To: John Arnold/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT cc: Subject: Electricity and Natural Gas hedging John and Tim -- I believe this one is for both of you. Thanks. Eric ---------------------- Forwarded by Eric Thode/Corp/Enron on 09/22/2000 09:29 AM --------------------------- [email protected] on 09/21/2000 11:31:32 AM To: [email protected] cc: Subject: Electricity hedging ---------------------- Forwarded by Lisa M Feener/ENRON_DEVELOPMENT on 09/21/2000 11:30 AM --------------------------- "Holbrook, Doug" <[email protected]> on 09/21/2000 10:26:32 AM To: "'[email protected]'" <[email protected]> cc: Subject: Electricity hedging I work for the Airport Authority for Seattle-Tacoma International Airport in Seattle, Washington and I am responsible for Managing the Utilities. We are interested in hedging our Electricity and Natural Gas supplies. Can I get some information on Enron's services in this area? Douglas C. Holbrook Manager, Business & Utilities Management Port of Seattle Seattle-Tacoma International Airport PO Box 68727 Seattle, WA. 98168 Phone: 206-433-4600 Fax: 206-988-5515 [email protected]	[email protected]	[email protected]
arnold-j/discussion_threads/108.	subject: Re: Electricity and Natural Gas hedging content: ---------------------- Forwarded by John Arnold/HOU/ECT on 09/25/2000 02:18 PM --------------------------- To: John Arnold/HOU/ECT@ECT, Phillip K Allen/HOU/ECT@ECT cc: Chris H Foster/HOU/ECT@ECT, Greg Wolfe/HOU/ECT@ECT Subject: Re: Electricity and Natural Gas hedging I suggest that we initially cover this person out of the Portland office. One of our middle marketers can easily get up to meet with this guy. Depending on the magnitude and complexity o their power and gas needs are we will then pull in the appropriate people. Phillip and John, let me know if this works for you. Eric Thode@ENRON 09/22/2000 07:28 AM To: John Arnold/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT cc: Subject: Electricity and Natural Gas hedging John and Tim -- I believe this one is for both of you. Thanks. Eric ---------------------- Forwarded by Eric Thode/Corp/Enron on 09/22/2000 09:29 AM --------------------------- [email protected] on 09/21/2000 11:31:32 AM To: [email protected] cc: Subject: Electricity hedging ---------------------- Forwarded by Lisa M Feener/ENRON_DEVELOPMENT on 09/21/2000 11:30 AM --------------------------- "Holbrook, Doug" <[email protected]> on 09/21/2000 10:26:32 AM To: "'[email protected]'" <[email protected]> cc: Subject: Electricity hedging I work for the Airport Authority for Seattle-Tacoma International Airport in Seattle, Washington and I am responsible for Managing the Utilities. We are interested in hedging our Electricity and Natural Gas supplies. Can I get some information on Enron's services in this area? Douglas C. Holbrook Manager, Business & Utilities Management Port of Seattle Seattle-Tacoma International Airport PO Box 68727 Seattle, WA. 98168 Phone: 206-433-4600 Fax: 206-988-5515 [email protected]	[email protected]	[email protected]
arnold-j/discussion_threads/109.	subject: FW: The today show!!!!! content: ---------------------- Forwarded by John Arnold/HOU/ECT on 09/25/2000 04:50 PM --------------------------- "Zerilli, Frank" <[email protected]> on 09/21/2000 02:46:05 PM To: "Christine Zerilli (E-mail)" <[email protected]>, "David D'alessandro (E-mail)" <[email protected]>, "Eric Carlstrom (E-mail)" <[email protected]>, "Eric Carlstrom (E-mail 2)" <[email protected]>, "Jason D'alessandro (E-mail)" <[email protected]>, "Jeannine & Rob Votruba (E-mail)" <[email protected]>, "josh Faber (E-mail)" <[email protected]>, "Karen Brennan (E-mail)" <[email protected]>, "Lew G. Williams (E-mail)" <[email protected]>, "Lew G. Williams (E-mail 2)" <[email protected]>, "Mark Creem (E-mail)" <[email protected]>, "Mom & Dad Zerilli (E-mail)" <[email protected]>, "Pat Creem (E-mail)" <[email protected]>, "Robert Votruba (E-mail)" <[email protected]>, "Sean Jacobs (E-mail)" <[email protected]>, "Sharon C. Zerilli (E-mail)" <[email protected]>, "Stacey & Dave Hoey (E-mail)" <[email protected]>, "'[email protected]'" <[email protected]> cc: Subject: FW: The today show!!!!! You should be able to view this with Windows Media Player. Keep your eyes peeled. Chris > use care > > Uncut version of today show > > > <<flash4.asf>> - flash4.asf	[email protected]	[email protected]
arnold-j/discussion_threads/11.	subject: content: Hello... Despite my thoughts, you like baseball. So the question is do you like art (as in musuems) ? I'm leaning towards yes but don't know for sure.	[email protected]	[email protected]
arnold-j/discussion_threads/110.	subject: content: Eric: I passed the customer on to Jennifer Fraser and Fred Lagrasta. Please coordinate with them. Thanks, John	[email protected]	[email protected]
arnold-j/discussion_threads/111.	subject: Mario De La Ossa content: can you please add this ---------------------- Forwarded by John Arnold/HOU/ECT on 09/26/2000 11:03 AM --------------------------- Enron North America Corp. From: Molly Magee 09/25/2000 06:28 PM To: John Arnold/HOU/ECT@ECT cc: Subject: Mario De La Ossa John: John Nowlan, Dave Botchlett, Jim Goughray and several others met with Mario last week. They were all favorably impressed. Jeff Shankman had asked to meet with him, and their appointment is scheduled for Thursday, 9/28, at 1:30 pm. Jeff had also asked that you spend some time with him so that a decision could be made as to whether or not to make him an offer. Would you have some time available on Thursday afternoon to see Mario? Thanks, Molly x34804	[email protected]	[email protected]
arnold-j/discussion_threads/112.	subject: content: Ben: Jeff Shankman gave me your name. I have assumed Jeff's old responsibilities as head of the natural gas derivatives trading group. Our broker, EDF MAN, supplies us with $50 million of margin financing every night. They are trying to clean up their books for end of quarter and/or year on Sep 30. They have asked if we can post the $50 million overnight on the 30th. We did this last year as well. Please advise, John	[email protected]	[email protected]
arnold-j/discussion_threads/113.	subject: Commercials content: ---------------------- Forwarded by John Arnold/HOU/ECT on 09/27/2000 11:12 AM --------------------------- From: Margaret Allen@ENRON on 09/27/2000 08:24 AM To: John Arnold/HOU/ECT@ECT cc: Subject: Commercials So, what did you think?! Don't lie or stretch the truth either -- you won't hurt my feelings, I promise. By the way, by the time I arrived home it was completely dark so I went for a three mile run this morning. Not fun, but I'm definitely awake right now! BUT, it's all your fault I couldn't go last night....he!he! Trade well, MSA	[email protected]	[email protected]
arnold-j/discussion_threads/114.	subject: Re: content: Joe: I just wanted to run this past you... John ---------------------- Forwarded by John Arnold/HOU/ECT on 09/27/2000 12:05 PM --------------------------- To: John Arnold/HOU/ECT@ECT cc: Joseph Deffner/HOU/ECT@ECT, Tim DeSpain/HOU/ECT@ECT Subject: Re: John: I don't mind cleaning up their books at quarter end. However,at year end I will want to keep the debt off of my books. As we approach year-end this year could you please coordinate with Joe Deffner so that we take advantage of the margin lines we have available in order to minimize the debt on our books. Thanks, Ben John Arnold 09/26/2000 07:12 PM To: Ben F Glisan/HOU/ECT@ECT cc: Subject: Ben: Jeff Shankman gave me your name. I have assumed Jeff's old responsibilities as head of the natural gas derivatives trading group. Our broker, EDF MAN, supplies us with $50 million of margin financing every night. They are trying to clean up their books for end of quarter and/or year on Sep 30. They have asked if we can post the $50 million overnight on the 30th. We did this last year as well. Please advise, John	[email protected]	[email protected]
arnold-j/discussion_threads/115.	subject: Re: Commercials content: ---------------------- Forwarded by John Arnold/HOU/ECT on 09/27/2000 03:26 PM --------------------------- From: Margaret Allen@ENRON on 09/27/2000 01:45 PM To: John Arnold/HOU/ECT@ECT cc: Subject: Re: Commercials John, John, John....very impressive analysis! The first two commercials were supposed to be idealistic spots announcing Enron as an innovative company, while the next four are proof points to our innovation by showing the businesses we have created. I know you were elated to get an email from me this morning, thus proving that I had not been kidnapped and all those important things I work on would continue to be completed. Oh and that certainly is a pretty design you add to your emails. Very masculine! Smile, Margaret ps, i hope you can read my sarcasm over email -- if you knew me better, you would understand it completely since it is rare that i'm in a totally serious mood. hope you don't take offense! John Arnold@ECT 09/27/2000 12:29 PM To: Margaret Allen/Corp/Enron@ENRON cc: Subject: Re: Commercials I really liked the commercials about specifics (i.e. weather, EOL, bandwidth). The metal man was definitely at a different philosophical level than where my brain operates. Still not quite sure what was going on there. Ode was a bit too idealistic. The campaign in general was very different than previous. But I guess you know that and that's the point. Again, I think the commercials that showed why we are the most innovative were very impressive. Just telling people we are innovative made less of an impact. Sorry I ruined your run. At least you weren't molested by the River Oaks car thief. From: Margaret Allen@ENRON on 09/27/2000 08:24 AM To: John Arnold/HOU/ECT@ECT cc: Subject: Commercials So, what did you think?! Don't lie or stretch the truth either -- you won't hurt my feelings, I promise. By the way, by the time I arrived home it was completely dark so I went for a three mile run this morning. Not fun, but I'm definitely awake right now! BUT, it's all your fault I couldn't go last night....he!he! Trade well, MSA	[email protected]	[email protected]
arnold-j/discussion_threads/116.	subject: content: Hi: Can you get me subscriptions to the following magazines: The Economist Energy Risk Management Havard Business Review Thanks, John	[email protected]	[email protected]
arnold-j/discussion_threads/117.	subject: content: Jim: I apologize for the comment after your order. I knew you didn't like the market last night so I was surprised when you were an buyer this morning. It's not your style to change views quickly as you tend to trade with a longer term view. I was out of line with the comment and it won't happen again. John	[email protected]	[email protected]

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