Message-ID: <1580725.1075844275905.JavaMail.evans@thyme> Date: Fri, 17 Dec 1999 07:20:00 -0800 (PST) From: jerry.peters@enron.com To: rod.hayslett@enron.com Subject: NBPL Ratebase Multiple / NBP Unit Price Comparison Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Jerry Peters X-To: Rod Hayslett X-cc: X-bcc: X-Folder: \Rodney_Hayslett_Dec2000\Notes Folders\All documents X-Origin: HAYSLETT-R X-FileName: rhaysle.nsf Based on the attached, NBP is extremely cheap! While the level of required premium over the current market price to buy back the shares is difficult to determine, I wonder why we wouldn't take a hard look at buying Duke's units (at no premium). I see basically two paths: First, a strategic investment made in contemplation of buying the remainder of the NBP units back (presumably at a premium over current prices) and then contributing the NBP investment into the new regulated entity structure (at higher values). Second, at these prices the investment in NBP units compares favorably to other acquisitions GPG is looking at, e.g. East Tennessee. Even if the contribution to the new entity doesn't occur, GPG could hold the Duke units for an indefinite time period, report reasonably good incremental earnings and cash flow and sell them back to the public at an opportunistic level. What do you think? ---------------------- Forwarded by Jerry Peters/NPNG/Enron on 12/17/99 02:57 PM --------------------------- David Borcyk 12/15/99 10:01 AM To: Rod Hayslett/FGT/Enron@ENRON cc: Jerry Peters/NPNG/Enron@ENRON Subject: NBPL Ratebase Multiple / NBP Unit Price Comparison Rod, Here is an updated comparison of "2X NBPL Ratebase" (as you defined it) to yesterday's closing price for Northern Border Partners. I have also populated the matrix for various unit price premiums. Call if you have any more questions. /D. Borcyk