Subject: REVERSE MERGER
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 12 Nov 2001 13:37:28 -0800 (PST)

Rick

Just to keep you informed:

1) This reverse merger operation was proposed to Aneel in late 98 and approved in early 99. 

2) CVM (SEC Equivalent)  had to approve as well. CVM did not oppose at that time;

3) ANEEL took a long time to approve. Enron argued the AES case as a precedent.

4) ANEEL approved contingent upon Enron's having a separate accounting for the transaction, in such a way that it would not interefere with  the rate making process.

5) Other companies who filed later for a similar transactions faced increasing difficulties to get it approved. Both CVM and ANEEL established more stringent conditions. (I think only one more company  had the transaction approved - CPFL)

6) I am not aware of any further conditions imposed by CVM. Sergio (whom I copied) should have updated information about it

LM