Message-ID: <7643448.1075840212065.JavaMail.evans@thyme> Date: Tue, 3 Oct 2000 11:05:00 -0700 (PDT) From: john.sherriff@enron.com To: kenneth.lay@enron.com Subject: Atlantic Copper/Freeport McMoran Cc: mark.frevert@enron.com, michael.farmer@enron.com, michael.hutchinson@enron.com, thomas.boettcher@enron.com, eric.gadd@enron.com, michael.brown@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: mark.frevert@enron.com, michael.farmer@enron.com, michael.hutchinson@enron.com, thomas.boettcher@enron.com, eric.gadd@enron.com, michael.brown@enron.com X-From: John Sherriff X-To: Kenneth Lay X-cc: Mark Frevert, Michael Farmer, Michael J Hutchinson, Thomas Boettcher, Eric Gadd, Michael R Brown X-bcc: X-Folder: \Kenneth_Lay_Dec2000\Notes Folders\All documents X-Origin: LAY-K X-FileName: klay.nsf Ken I mentioned in a voicemail today that you should be receiving a phone call from James (Jimbo) Moffet (504) 582-4000. He is Chairman of Freeport McMahon in New Orleans. James had mentioned to Thomas Boettcher & Michael Hutchinson in our Metals group that he knew you and wanted to make sure you were supportive of our discussions with them. Here is the background on a possible acquisition that we have brought up with them: Enron Metals is very interested in pursuing further discussions with Atlantic Copper on the acquisition of their smelter in Spain. Estimated capital would be US$350 Million. Acquiring this asset gives us the opportunity to build copper and copper concentrate positions and more effectively managing our positions in the market place. We would finance this off balance sheet. Mr. James Targetta, head of Atlantic Copper (copper smelter and refinery in Spain and fully owned by Freeport McMoran) had a conversation with James Moffet, Chairman of Freeport McMoran last Friday informing him about our preliminary conversations. Moffet advised Targetta not to proceed further until he speaks to you since he has known you for 25 years. In addition, Targetta mentioned the possibility for Enron purchasing all the copper mining activities of Freeport McMoran which would leave them as an oil and exploration company. We think there are some great possibilities here. If you have not heard from him in the next few days, I would really appreciate you giving Moffet a call. I would be more than happy to get a more extensive briefing for you if you think you need it. I look forward to discussing this further with you. John