Message-ID: <27670309.1075846390054.JavaMail.evans@thyme>
Date: Fri, 10 Nov 2000 03:40:00 -0800 (PST)
From: mark.palmer@enron.com
To: mark.metts@enron.com, steven.kean@enron.com
Subject: Elektro
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As usual, not as bad as originally reported.  Note that media interest is 
minimal.

Mark
----- Forwarded by Mark Palmer/Corp/Enron on 11/10/2000 11:39 AM -----

	Keith Miceli
	11/10/2000 11:26 AM
		 
		 To: Mark Palmer/Corp/Enron@ENRON
		 cc: John.Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: 

Mark:  Per your request, following is a rough translation of the article that 
appeared in the Gazeta Mercantil (GM), which is considered the WSJ of 
Brazil.  As you recall, in May, GM ran a story on the possible sale of 
Enron's assets, which we responded with Corp's "no comment" policy.  In some 
respects, today's story on the sale of Elektro is not likely to generate much 
follow-on media interest because the "rumors/speculation" of selling assets 
have been "on the street" since May.  In fact, I received an email from our 
PR office in Sao Paulo this morning, informing me  that there has been only 
one media inquiry (Jander Ramon from the news agency Estado) and our response 
was "no comment."  Keith 

Gazeta Mercantil - Panorama Setorial - 
By Katia Ogawa
ELEKTRO: Enron leaves the company and tomorrow opens data-room in SP
S?O PAULO, November 8th, 2000 - The North American Enron will make available 
to the market, starting tomorrow, the information regarding its controlled 
Elektro. The S?o Paulo concessionaire's data-room opening represents the 
official selling of the equity, acquired by Enron on July, 1998. The 
intention to leave the business had already been disclosed by the 
North-American, that had not yet sent any formal signal in this sense.
Executives from the sector point-out that Elektro shall stay in the hands of 
the Eletricidade de Portugal (EDP), but they do not risk a business value 
projection. Eletropaulo has already disclosed that it has no interest in 
participating in the dispute, likewise the CMS, that controls the Companhia 
Paulista de Energia El,trica (CPEE).
The offer of Elektro to investors is being treated confidentially among the 
companies. Market sources suggest that Enron might present the controlled 
company under a new shape, split-up in two parts, that could encompass the 
commercialization and operation areas. The data-room will be set-up in a 
hotel, located in the South Area of the City of S?o Paulo.
Elektro distributes energy to 223 S?o Paulo Municipalities, in addition to 
other five from Mato Grosso do Sul, with a client base of approximately 1.5 
million. Enron has acquired the concession on July 16th, 1998, by offering R$ 
1,479,357,290.00, with a spread of 98.94% over the minimum price.