Message-ID: <19594411.1075854469329.JavaMail.evans@thyme>
Date: Wed, 20 Sep 2000 02:29:00 -0700 (PDT)
From: david.delainey@enron.com
To: joseph.deffner@enron.com, david.gorte@enron.com, ozzie.pagan@enron.com
Subject: AIG Fund
Cc: andrew.fastow@enron.com, rick.buy@enron.com, larry.izzo@enron.com
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Guys, I would like to add the following commentary to the DASH which will 
better reflect my thinking around this investment.  The current text suggests 
that there is significant strategic advantage for ENA to be a participant in 
the fund.  I do not think that is the case; however, I do see some merits in 
the investment based on the needs of Enron's Global Finance group.  I would 
suggest toning down the strategic advantages and add the following:

 It is unlikely that given the funds target returns that the it will be an 
effective permanent monetization vehicle for ENA's strategic and merchant   
investments; however, Enron Global Finance believes that the investment is 
important for the following reasons:
  a) provides an additional "Friend of Enron" to facilitate short to medium 
term balance sheet and regulatory solution to highly structured    commodity 
and capital transactions in the wholesale group;
  b) provides alternative sources of short term capital liquidity and
  c) by further developing the relationship with AIG provides collateral 
benefits for Enron's overall Global Finance capability and business.

ENA would have a requirement that this investments be hedged through Raptor 
and be managed by the Enron Global Finance Group.

Regards
Delainey