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
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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