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I heard your decision on channel 13 this morning as I was dressing for work.
I was not moved by your gesture to give your contractual monetary provisions back to the company who would be Dynegy when this is all said and done.
If you are sincere about wanting to help Enron, then helping the people who have made Enron what it is today would be a more appropriate gesture.
Clearly you know that Dynegy's employees will be given higher consideration for jobs than Enron employees will.
The company will be dismantled and so will our lives.
The road to Enron was not an easy one, and my decision to seek employment here was difficult in light of the way Enron is portrayed in the back offices of the energy industry.
Enron is said to be a sweatshop, a backstabbing work environment and that the executive levels of management at Enron fuel, foster and support this type of mentality.
I have worked in various commercial capacities, and I came to Enron with the hope that times had changed, and that the thriving energy industry had taken Enron to another stratosphere, and I was right!
I love my job because the work environment is conducive to a mature and intelligent exchange of information and growth potential.
Just when you believe you are among the most intelligent, there is always someone who comes along with more real world application, with common sense and integrity added.
Hiring intelligent people is a great practice, but I've worked with the best and the brightest in many companies so Enron is no exception.
Hiring the best and the brightest obviously was the downside to Enron's demise.
It appears that there is a thin line between intelligence and arrogance and Enron appears to have stepped over that line.
Due to what you called "mistakes in judgement'", my future here is uncertain, as is that of my my co-workers.
Many are agonizing about their families futures as well.
I have survived a corporate merger, bankruptcy and buyouts with a number of companies specifically, Texaco, Columbia Energy Group and Amoco.
During all of this I continued to hold my head high and to provide the same level of service during these transitions, so that at the end of the day my self esteem and integrity would be intact.
Yes, we can and will all find other jobs, just as the many other recently unemployed people in this hurting economy will.
Everyone speaks to the loss of investor confidence, class action lawsuits and corporate losses, but who speaks out for the employees affected by the actions of a few.
We were robbed of our hope, and the expectation of doing a good job and reaping the benefits.
The investors and the employees here were kept in the dark, and the powers that be have just sold us down the river and for what?
For a handful of people to get richer.
Rationalizing and trying to bargain the behavior of those who are at fault for this catastrophe is just wrong.
Taking it to a level where you somehow convince yourself that everything that has happened to date is okay, is just wrong.
Companies merge, are bought out and collapse every day due to mismanagement, industry nose dives and economic slow downs.
But please tell me how a company in just a few weeks, can go from a powerhouse to a beggar on the streets of downtown Houston?
Truthfully, Not just merely a whiner, but a long suffering Gas Industry Specialist.
Cynthia Boseman-Harris
| Does capitalism have a conscience? |
The following reports have been waiting for your approval for more than 4 days.
Please review.
Owner: Mark E Koenig Report Name: Miscellaneous IR Expenses & Boston trip Days In Mgr.
Queue: 5
| Expense Reports Awaiting Your Approval |
Dear Dr. Lay: Today was Diwali, the festival of lights.
As I sat and prayed this evening my thoughts turned to you and I said a small prayer for all of my friends at Enron.
I have as you would expect been following the events of the last few weeks with concern.
I wish you all the strength and resolve as you commit yourself to leading Enron through these difficult times.
You have always been a leader to those who have worked closely with you and have surely faced more difficult times than these and successfully.
Best Wishes from all of us at THOT Capital,
| Message |
Ken and Greg I am part of the Enron Tax Department, assigned currently to Enron Global Assets, previously to Enron India.
Your comment regarding the very bad investments Enron made in international assets is absolutely true.
Perhaps the assets themselves are not all that bad, Enron just over-paid, over-built or over-leveraged.
In some cases, I suspect we did all three!
But that's not the point of this message.
When you make statements like you did in yesterday's Investor conference call it erodes EGA's ability to sell those assets (who wants to buy a very bad investment ?)
and chokes the spirit of the employees who have remained loyal to Enron and continue to support the needs of EGA.
The 100 or so members in the EGA support group did not make the bad decisions.
Those were made by former and current executives, RAC, Enron's Board of Directors, and others who were well-qualified to make such decisions.
I cannot begin to tell you how hard Tax, Legal, Accounting, PR, etc.
worked to make the best of what often-times looked to us to be a stupid if not bad investment.
Many of those who remain have devoted several years to Enron's international experiment.
We've given up dinner with our families, weekend soccer games and campouts, in many cases we have even sacrificed our good health.
I suspect we will continue to make those sacrifices in order to close asset sales and efficiently return to Enron the remaining value.
Please, when you proclaim to the World the very bad investments Enron made, take some time to remind those of us who are left to unwind these investments that Enron is fortunate to have some very bright and dedicated employees diligently working to contain the damage already done.
Sincerely,
| ... we definitely made some very bad investments ... |
Dear Mr. Lay, It would be difficult for me to describe the excitement I experienced when I first knew that I was soon to be an Enron employee over a year ago.
I came into Enron in EES August 2000 as an Account Manager in the Costa Mesa office.
I asked for the most challenging assignment available and was given the opportunity to manage the relationship and contract execution between EES and the majority of our marquis national customers (Owens-Corning, Suiza, Quebecor, General Cable, Packaged Ice etc).
I really loved that assignment and (according to the PRC) was excellent at what I did.
I (like many others at Enron) left a very lucrative job to join EES and I have turned away several opportunities since joining the company.
I had envisioned being a part of something as exciting and innovative as Enron as more rewarding than following more lucrative job offers.
Now, I find myself in a position that I would have never dreamed of: * I'm uncertain about my job security * Like so many others, I've lost significant personal wealth * I'm not proud or excited to tell others that I work for Enron * I fight with my instinct to leave hoping that I can be a part of something good coming from all of this.
I don't understand how this could have happened.
So many decent, hard working, loyal, honest people are being devastated by the results of questionable management, a lack of leadership and the appearance of abject greed among Enron Sr. executives.
This is a truly sad state of affairs that will be the subject of so many "B" school projects most of which will focus on our mistakes.
So, what can a guy so far down the food chain do these days to help right the ship?
I am here, I do not want to abandon ship and I am ready willing and able to make a difference.
Mr. Lay, there are some brilliant employees buried below layers of management that have proven little more than incompetence.
Consider finding time to visit the troops in the field and solicit input.
I believe you can find more hope for resurrection out here than behind the filters that exist between you and your real employees.
My prayers are with you,
| An Enron Employee's Perspective |
As we begin to work on our board/senior management retreat for 2003, we would like to test your interest in the possibility of holding the meeting in Shanghai during the week of June 15, 2003.
The tentative schedule would be to travel on Monday, June 16, arriving in Shanghai on Tuesday.
Meetings would take place Wednesday through Saturday, with departures on Sunday.
Please let me know if such a schedule would be feasible for you, keeping in mind that at this point we're simply trying to determine if you would be able to devote this week to the trip.
Alecia DeCoudreaux
| Board/Senior Management Retreat - June 2003 |
Ken, I'm sorry about all of the negative press you are receiving.
We missed you at the forum meeting this past Monday.
The only valid critism anyone can lay on you is that you were too good of a corporate citizen for our city.
We're thinking of you.
Peter - C.DTF
| personal |
The Sunday, June 10, issue of Parade Magazine (the Sunday Newspaper Supplement), will feature Howard University's Dr. Clive Callender, renowned transplant surgeon and founder and principal investigator of the Nation Minority Organ and Tissue Transplant Education Program (MOTTEP), based at Howard University Hospital.
The purpose of the article is to increase awareness of the need for more organ donors.
The article will also feature National MOTTEP's toll free number and the website address.
| Print Alert: MOTTEP on "Parade" (06/10/01) |
Happy Thanksgiving Kenneth... For any changes to your record, please use reply on your e-mail program with this entire message included because each record is individualized.
Your private record is in "WWW."
Feel free to share this story of Thanksgiving with friends and family
| Thanksgiving story to share with family and friends for Kenneth Lay ... |
DRAFT (Can we allow employees the afternoon of December 14 off?)
This is a trying time for all of us.
I carefully considered whether a holiday celebration is appropriate this year and, to be honest, employee feedback was mixed.
Many viewed the holiday party as a unique opportunity for us to come together as Enron employees to share the spirit of the season.
After all, the challenges we face as a company seem small in relation to the significance of this holiday season, especially in light of the events of September 11.
However, I have ultimately decided to cancel the all-Enron holiday party that was scheduled for December 8.
Given what has transpired over the past month, it would be imprudent for Enron to incur the expense of such an event.
I regret that this action is necessary because I recognize that your hard work throughout the year merits a holiday celebration and so much more.
While Enron cannot provide parties this year, we will give employees worldwide the afternoon off on Friday, December 14, so that they can spend time with their families and friends.
I wish you the best this holiday season, Ken Lay
| DRAFT -- Enron Holiday Party Canceled |
Dr. Lay (in care of - Rosalee Fleming): We are very pleased to have you participate in our "Markets in Transition" symposium on January 10, 2001.
I will be sending additional information to you, but I wanted to give you some "advance warning" on a couple items.
We will be putting together a symposium brochure in December.
As part of that, we would like to get a biography of you (about 200-250 words in length), and a photograph.
We will need this by around the first of December, so I wanted to give you a little advance notice.
I will contact you after Thanksgiving to provide more details around this event.
If you have any questions in the meanwhile, feel free to contact me.
Brad Burke Associate Director, Rice Alliance
| Rice University - Markets in Transition Symposium - Jan. 10, 2002 |
I wanted to inform you of an investment opportunity with Shawn Gross.
=20 =20 He planning on developing a 2.5-acre tract at the corner of Kirby & Braesw= ood.
This location as you know is close to the medical center area and su= rrounded quality old neighborhoods.
Two apartments in the area have been = very successful.
The Providence across the street is getting rental rates= in the $1.22 per square foot and Kirby Place, an older apartment complex, = is getting $1.13 per square foot.
=20 The preliminary plan is to develop three or four story structures with a t= otal of approximately 110 or 150 units, respectively.
The total project c= ost are projected to be $8.1 million or $10.9 million.
Capital required f= or this development is between $1.6 million (for the three story developme= nt) and $2.2 million (for the four story development).
An additional call= later on during development could be around $200,000 due to increasing co= sts (i.e, increase in lumber prices).
The property would probably be comp= leted 18 months out.
Projected IRRs are between 20% to 28% depending on t= he sale of the property.
Return on Cash Invested starts at approximately = 11% in 2002 and increases steadily up 20% around 2006.
Assumptions are: $= 1.22 per square foot rents; revenues & expenditures rising 3.5%; vacancy l= oss of 5%; Cap Rate of 8.5%; total project cost between $8.1 million and $= 10.9 million, depending on three or four stories.
There is an issue with = the property being in the 100-Year Floodplain, but he is proposing to alle= viate the problem by creating a water feature on the property and raise the= grade of builderable area above the Floodplane.
=20 I spoke to Jenard about the project before I've been able to discuss it fu= rther with Shawn.
I asked him about some of the assumptions, such as the = rental rates and cap rates which I thought where a bit aggressive.
He tol= d me to the contrary, that Shawn's other project is pulling in similar rat= es, as well as other non-Shawn projects.
With regards to the cap rate, he= said that he has been seeing 8%, which would call for a greater sales pri= ce than the assumed 8.5% (I can discuss this in further detail for anyone = who doesn't understand cap rates).
Jenard is investing 15% of the capital= required as a limited partner (same terms as the rest of the partners) an= d Shawn is investing 5% (4% as a limited partner, 1% as GP).
Shawn will b= e the developer, JMG Builders will be doing the construction, and JMG Mana= gers, Ltd. will be managing the property.
In otherwords, Dad will have hi= s construction company and management company doing the project.
Shawn wi= ll be the developer.
While the property is under operation there should b= e distributions (not treated as capital returned).
At the time of sale, m= ortgage refinance, or other capital event, after all debts have been repai= d, all of the partners will get their capital contribution back.
Then, pr= ofits are distributed.
I can go through the partnership structure for tho= se who are interested, which includes distributions and fees.
=20 =20 I am considering investing in 1% to 2% of the deal.
A 1% percent investme= nt amounts to either $16,000 or $22,000 invested, depending on the three o= r four story scenario, plus the possible additonal cash call of $2,000.
T= here are several risks (i.e., softening of rental rates) which dooesn't mak= e the returns a guarantee.
However, I feel good about the Houston econom= y and absorption rates in the residental (and commercial) markets for Hous= ton.
Feedback from Jenard regarding his developments in Houston and Steve= Keller's South Rice Apartment development have all been extremely positiv= e. Shawn's personal developments include: one in Houston completed and d= oing great; the other Houston project never got developed because someone= offered him so much money on the land, he and his partners had to take it= (not a bad problem considering it took the risk out of developing and ret= urned an enormous IRR to the investors).
Although he has not developed mu= ch, his father is an investor and will have some involvement.
Money inves= ted would be tied-up for at least two years (unless something happens like= his last project), but up until a sale which could take between 2 to 5 ye= ars (or longer) there could be distributions.
That assumes that the proje= ct is doing well.
=20 Anyway, please let me know if any of you are interested.
The deal is sche= duled to fund June 10.
Like I said, I have not heard from him on all the = specifics.
Therefore, I don't know at this time how much is of the deal i= s even available.
I would be glad to discuss this in greater detail with = any of you that are interested.
=20 - Beau
| Real Estate Investment - Shawn Gross |
Kenneth L. Lay ENRON Rod Canion, John Lee and Rob Shaw have relied on Brookwoods to develop and disseminate their business message to investors, analysts and key media contacts with their various markets.
Is your message getting to the target audience?
Is your message getting the results you expect?
If you answered NO or I DONT KNOW to either question, have your administrative assistant call me to arrange a brief confidential review and assessment.
Start getting the results you expect.
Charles Beck Brookwoods Group
| THE RESULTS ARE IN |
Kenneth L. Lay ENRON Rod Canion, Rob Shaw, John Lee and other movers and shakers in town call on Brookwoods to develop their Talking Points and PowerPoints.
They use these speeches and presentations to deliver critical business messages to investors, analysts, media and key industry partners.
How does your message sound?
How does it look?
Does it deliver the results you want?
If you answered NO or I AM NOT SURE to any question, have your administrative assistant call me in for a brief confidential review and assessment.
Charlie Beck
| THE RESULTS ARE IN |
PRIVATE EQUITY IN LATIN AMERICA: AN ATTRACTIVE INVESTMENT OPPORTUNITY?
Violy McCausland, President and CEO, Violy, Byorum & Partners Timothy Purcell, Managing Partner, J.P. Morgan Latin America Partners Andrew C. Quale, Partner, Sidley & Austin Moderator: Susan Segal, Partner, J.P. Morgan Partners LLC The panelists will discuss the opportunities and challenges of investing in the region and the importance of private equity as a source of capital for emerging markets.
Tuesday, June 19, 2001 Registratio n and continental breakfast:8:00 - 8:15 a.m.
Presentations and discussion: 8:15 - 9:30 a.m. (Note longer program time) Council of the Amer icas, 680 Park Avenue (at 68th Street), New York City - MIAMI FTAA01.TIF - PrivateEquity01ANN.doc
| June 19 - Private Equity in Latin America |
Election Night Returns Party: on election night, Nov 6, starting at 7 and going late into the night, we'll be at This Is It Soul Food, located just outside downtown.
Directions are available at the end of this message, along with a review of the restaurant.
Please stop by.
The evening will be very casual, and hopefully we'll have good news.
Friday evening early vote: early voting ends this Friday at 7 p.m. We're meeting from 4 p.m. to about 8 p.m. this Friday, Nov 2, at La Griglia on West Gray just east of Shepherd.
There will be a cash bar and appetizers.
It's very, very casual.
We're encouraging everyone to VOTE EARLY before you stop by, and bring as many friends or co-workers as possible.
You can vote at the West Gray Multi-Service Center just down the street at 1475 W. Gray, between Waugh and Shepherd, across from the Cafe Express.
Remember, regardless of where you live, ANYONE can vote at that or ANY early vote site.
All you need is your driver's license (in case you forget your registration card).
If you're downtown, you may also choose to vote at 1301 Prairie, 16th floor.
For both of these events, your check made payable to the Michael Berry Campaign is welcome but not required.
PLEASE spread the word.
Please cut and paste this message to your list: My friend MICHAEL BERRY is running for Houston City Council at-large position 4 (the seat being vacated by Chris Bell).
I hope you'll join me in voting for him.
For more information on Michael Berry, see his web site at www.michaelberry.com .
| MICHAEL BERRY campaign: 1) election night; 2) early vote party this Friday |
Mr. Lay: I would greatly appreciate your assistance in helping to strengthen a relationship EES has with Sysco Corporation.
EES and Sysco began discussing a wide array of business opportunities with one another in the Fall of last year.
On June 30th of this year, we entered into a 10 year electricity supply contract for all of Sysco's California facilities.
We are currently pursuing two important Q4 transactions with Sysco; an electricity supply contract for their Texas facilities and a demand side management contract for all of their facilities.
We had planned to close the Texas supply transaction today.
However, in a phone conversation I had this morning with Sysco's Director of Procurement, Terry Taylor I was informed that Sysco's CEO, Charles Cotros has instructed Mr. Taylor not to enter into any further transactions with us "until Enron's financial picture clears up".
Mr. Taylor believes that Mr. Cotros' concerns about Enron would be diminished if he received a call from a senior executive at Enron.
Rosalee indicated that you and Mr. Cotros serve together on the Board of Directors for the Greater Houston Partnership.
Would you please call Mr. Cotros and attempt to assuage his concerns about our financial condition.
Mr. Cotros is out of the office until Thursday, November 1st.
His direct phone number is (281) 584-1415.
His assistant is Andrea Walters and her phone number is (281) 584-1405.
Mr. Cotros' biography is as follows: Charles H. Cotros, age 64, has served as a director of SYSCO since 1985.
Mr. Cotros has served as Chairman of the Board since July 2000 and as Chief Executive Officer since January 2000.
He served as Chief Operating Officer from 1995 until January 2000 and as President from 1999 until July 2000.
He has been employed by SYSCO since 1974.
Mr. Cotros is Chairman of the Executive Committee and he is also a member of the Finance Committee.
Source: Proxy, 9/24/01 Thank you in advance for your consideration and anticipated assistance.
Otherwise, please let me know if you will not be able take the action requested and I will initiate an alternative plan.
Respectfully, Craig Sutter X 31829
| Request For Assistance |
Mr. Lay: Thank you again for lunch yesterday.
I really did enjoy spending time with you are your family.
As I mentioned yesterday, I have some internal public relations suggestions for your review.
Please feel free to contact me if you wish to discuss this further.
I would welcome the opportunity to expand on these suggestions and help in any way you deem necessary.
I am off to GA to make you some money and will be back on Wednesday.
You are in my thoughts and prayers.
Yours sincerely,
| Internal Public Relations Memo |
I understand that you will be meeting with Harry Clark on Wednesday, and thought I should share with you my impression of him.
I have had mutual clients with Harry, and although I have a bias against guys in his business, I found him extraordinarily useful.
For one thing, he is intelligent; for another, perhaps as a consequence of the first, he doesn't over promise; for still another, I have never seen him give a client bad advice.
He is certainly worth a serious hearing.
Let me repeat here what I have said in a note sent to your home: if there is anything I can reasonably do to be useful let me know.
See you in San Antonio.
| Harry Clark |
Dear Ken, First, let me thank you again for your continued support of Scenic Missouri and Scenic Texas through your family foundation.
We are very grateful that you have embraced our efforts to save "America the Beautiful."
Second, I wanted to make sure you were aware of what I think may be a great public relations opportunity for Enron.
I think you may have already heard from Kathy Whitmire about it.
While at a Scenic America board meeting at Harlan Crow's Camp Topridge (you may have been there), I learned about Scenic America's upcoming program on PBS.
This will consist of a series of six airings of a 30 minute documentary on Scenic America, its mission and the issues with which it is involved.
Kathy Whitmire was at the meeting as was Carroll Shaddock, founder and chairman of Scenic Texas.
A substantial advertising discount is being made available to the corporation that sponsors this documentary.
This might be a perfect match for Enron, especially in light of your demonstrated commitment to the missions of Scenic America and its affiliates.
At any rate, I hope you will give this your consideration.
Thanks so much for your ongoing help and support.
| PBS public relations opportunity |
I understand that you may be limited on what business aspects you would want to discuss.....but we want you to know that if you would like to discuss any personal issues at the meeting or anytime...your forum members are with you any time....confidential, of course.
Let me know if there is ever anything we can do.
Warm Regards, Richard et al
| Forum |
Mr. Lay: In view of the events of past weeks surrounding Enron's stock, I am taking = the liberty of writing this note to you.
I will try to keep this brief.
Fir= st of all, I want to say that you are doing a terrific job.
With your lead= ership we will turn this around soon.
May God bless you and your family so = you can continue leading this great company out of this crisis.
I have been= with the company for almost 21 years.
I remember the difficult days that w= e have been through during this time .
Particularly I remember like yesterd= ay when I used to be in Omaha and you came there and, talked to all of us a= nd gave us hope and your commitment to turn things around in those uncertai= n and difficult days after the merger and promised to make this a great com= pany.
We all rallied behind you and we turned this company into one of the = greatest company in the world.
We are with you now, and with your leadershi= p we will turn this around again.
For most of us, Enron is not just a place= to work.
It is part of us.
It is our family.
It is our life.
In the curre= nt situation the pain we feel is the same as if one of our loved one was se= riously sick and we did not know what to do except to follow the advise of = the doctor.
We will follow your advise and give you our 200% .
On a persona= l level for me this a very emotional and painful time.
I have grown with th= is company that has given me great opportunities.
Currently I am working i= n Bolivia as president of Gas TransBoliviano and feel perhaps there is some= thing I should be doing to help in this situation.
Mr. Lay, If there is any= thing I can do above and beyond my current job, please let me know.
You hav= e my commitment and I will not disappoint you.
Please consider me like one = of those guys in NY showing up with shovels to help after the WTC disaster.= I am hoping that I will be called upon.
Again, may God bless you and your = family.
Look forward to seeing you in San Antonio.
With Kind Regards, Nasim Khan
| May God Bless you and your family- We are with you |
Uncle Ken, I just wanted to drop an email letting you know that we are praying for you.
Everything will work out and Enron will be back on its feet ready to run again.
Good Luck with everything.
Sincerely Jim
| You the man |
Enron taps credit line; stock slides 10/27/2001 Associated Press Newswires Copyright 2001.
The Associated Press.
All Rights Reserved.
HOUSTON (AP) - After Enron Corp. tapped into more than $3 billion in credit in an effort to boost confidence of investors and customers, stock prices dropped.
Enron Corp.'s stock price hit its lowest point in more than five years Friday.
Shares fell 95 cents on Friday to $15.40, a level not seen since 1995, as analysts continued to muddle through a complicated series of bookkeeping issues revealed after the company's earnings announcement earlier this month.
The stock is down more than 50 percent in two weeks, and the company lost almost $14 billion in market value.
Late this week the company decided to convert $3 billion in revolving credit it has through various banks into cash.
The company put about $1.1 billion in the bank in an effort to reassure business partners and investors of its liquidity and is using the $2.2 billion balance to begin an orderly repurchase of a certain kind of short-term corporate IOU known as commercial paper.
"Nothing spells confidence quite like cash, which is what we want investors to understand," said Enron spokesman Mark Palmer of the $1.1 billion banked this week.
Palmer could neither confirm nor deny that the company is negotiating further lines of credit with banks but described such actions as "good management decisions."
On Oct. 16 Enron's third-quarter earnings release drew renewed attention to an issue investors and analysts had previously been unhappy about: Then-Chief Financial Officer Andrew Fastow, with the Enron board's approval, had formed and run two investment partnerships that could have created a conflict of interest.
The partnerships, LJM Cayman and LJM2 Co-Investment, did complex financing and hedging deals with Enron.
Fastow had resigned from his roles in the partnerships months ago when Wall Street began to question whether he could watch out for the interests of Enron's shareholders and the investment partnership simultaneously.
But last week when the company reported a $35 million loss related to ending its LJM ties as well as a $1.2 billion reduction in shareholder equity, new questions began to arise.
The Securities and Exchange Commission's Division of Enforcement launched an informal inquiry into the partnerships, and earlier this week Fastow was put on a leave of absence.
Reducing the company's debt exposure through commercial paper and putting it back into more traditional financial tools, like a revolving line of credit, could give great peace of mind to Enron's investors, said Anatol Feygin, an analyst with J.P. Morgan.
"It helps them shore up their support behind their energy trading business, which is really the core of their operations," Feygin told the Houston Chronicle for Saturday's editions.
Carol Coale, an analyst with Prudential Securities, still sees the move as somewhat confusing.
"Just last week they were touting their unused lines of credit as a plus, but the fact that they tapped those now sends a strange, mixed message," she said.
"Do they need the cash to keep the rating agencies off their back?
Is it a gesture for customers?
It first struck me as another one of these strangely timed actions on the part of management."
..................................................................................................................................... BARRON'S: REVIEW & PREVIEW 10/27/2001 Capital Markets Report (Copyright (c) 2001, Dow Jones & Company, Inc.) Turning Up the Heat: Energy trader Enron ousted its chief financial officer days after it said the SEC was conducting an inquiry into billions of dollars of transactions it made with entities tied to the CFO, Andrew S. Fastow.
Enron said Fastow took a leave of absence to restore investor confidence.
Enron shares have plunged 50% recently, after it announced the probe and reported a $618 million loss.
BARRON'S: The Trader 10/27/2001 Dow Jones Commodities Service (Copyright (c) 2001, Dow Jones & Company, Inc.) Bulls Look To Recovery, As Techs Lead The Surge By Andrew Barry
| Saturday Articles |
Ken, I would like to like to schedule a meeting with you to discuss your corporate customer service initiatives.
eAssist is the most highly sought after customer service solution within the Global 500 arena.
eAssist's value proposition will provide you and your executive team the ability to consistently increase revenues, decrease operational costs, improve customer service and increase shareholder value.
I look forward to hearing back from you as to your availability.
Regards,
| eAssist |
Gentleman, Thanks for your assistance and support at the recent TFA board meeting.
In the good news department we have several items.... 1.
Houston Endowment commited $200,000 payable in two installments (June 2001 and June 2002).
Thanks to Jack Trotter for asisting with this
| Houston Endowment, Corporate Support and TFA-Colorado |
Ladies and Gentlemen: Thank you for the constructive dialogue and feedback you have provided to the process of developing a charter for a Global Business Council at the WEF.
As part of the process, we have solicited Council member feedback on the proposed role, structure, governance, activities and performance of the Global Business Council.
A large number of members have responded through interviews, e-mail and faxes with their thoughts and perspectives.
You have clearly communicated to us that in order to be a successful and high performing group, the Global Business Council needs to: - Have a clear and articulate purpose - Primarily serve as an advisory body - Work in a flexible and informal manner - Develop a balanced agenda of globally relevant business issues - Provide a forum to review these core issues in depth - Have meetings that provide substantive discussion to progress the core agenda.
We have incorporated this thinking into a strawman charter for your review and feedback.
We will include your comments on this strawman and develop the next iteration of the draft charter by November 2nd.
As discussed, all responses and comments will be recorded without attribution to the member source.
Thank you, again, for taking the time to support this exercise.
| GBC - Strawman Charter |
Dear Ken, Thank you for returning my call.
Sorry I was out of the office.
I had called you about two things: Firstly, I would like to ask your support of Enron Foundation's consideration of a grant to the Bush Library endowment campaign and to give you an update on the campaign; and Secondly, I would like to talk to you about setting up a meeting with our CEO, Tom Casey.
I have recommended Tom Casey for membership for the Business Council.
Several key CEOs have written letters of support, but Tom needs to get to know some of the members of the Council's Executive Committee, and I believe you are one of them.
Perhaps he and I can swing by Houston in the next few months to see you?
I am taking the liberty of sending you a copy of our new Annual Report .
Hope to see you soon, Lod 5/25/01
| Phone Call |
Dear Dr. Lay: I am writing this message to you after a few days on the ground in India.
The news from India continues to be grim and I have several things that I want to discuss with you.
1.
The news on the oil and gas front is not good as u probably have heard by now.
There is little chance that BG will get its request for operatorship approved for various reasons that I can explain.
If u like, we can do the deal on similar terms with another party and close the same very quickly.
I have been contacted by a few people and could deliver the same to you if there is an interest.
2.
On the Dabhol front, I would like to urge that we meet and discuss a few ideas that I have.
I know that you are extremely busy at this time but maybe next week I could come to Houston and we could find some time to meet.
I know that there might be a difficulty in non-Enron especially ex-Enron people working this issue when u have a full internal team already on the job... but I think that it maybe useful and apprpriate to put those concerns aside and see if a solution could be found using any and all available resources.
There maybe ways that would prevent the equity from taking a big write off at this time and get everyone moving towards finding a solution.
In the meantime, there is a strong effort in India along the judicial enquiry front to use it to derail the arbitration.
Our friends there can help us only if we are on the ground and give them some hope that a solution is going to be found.
The Indian government is not terribly motivated at this time and if Enron does not creat options, it will not result in a terribly good result for Enron either financially or from a PR perspective.
Again, I know that with several issues occupying you at this time, this may not be the most burning one.
However we have had limited success at a resolution so far and some other alternatives maybe worth considering.
If you permit, I would love to discuss them with you.
regards
| India Issues -Catching Up |
On October 12, a letter was mailed to the CHI membership requesting permission to use your name along with the names of other prominent Houston leaders in advertising supporting Proposition 1.
The campaign will likely begin running their ads this weekend...therefore, it is mperative that we receive your permission to include your name by today, October 25.
You may call Barbara Luikens at 713-650-1470 or email her at adminsec@centralhouston.org .
Thank you for your support.
| CHI -URGENT - PLEASE RESPOND |
Enron Corporation: We would like to welcome you to www.kudlow.com.
Either today or tomorrow you will receive an email stating there is a new Kudlow Commentary posted.
Simply click on the link, type in your email address and password "kudlow" to view and download Larry Kudlow's latest column.
If you wish to change your password, simply click on "my profile" once you have logged in.
Please be sure to check out all the other features of our website.
We welcome your questions and comments.
Thank you,
| KUDLOW.COM |
Dad, The message boards look really good today.
There are one or two bad guys, but they are the shorts and everyone else is betting on stock back in the 20's before the weekend and a turnaround.
The general consensus is Enron is still a good company with good earnings and this is a great time to buy.
Love You Dad,
| More Good News |
Hi Ken, =20 How is my famous fabulous cousin???
Our son Eric was home last weekend an= d went to the bank with me.
The banker, Eddie Smith, came out to see Eric= and see how he was doing.
He was glad Eric was working on his MBA.
I me= ntioned that Eric had applied at Associated Electric in Springfield but ha= d already committed to an internship at an insurance company and had agree= d to be a graduate assistant for the fall semester by the time Associated = called him.
He would still like to get on there at the beginning of next = year.
Eddie said Associated was a good co-op and would be a good starting= place but that Eric might want to contact Kenneth Lay.
He went on to say= that Kenneth was Dewayne Rees' cousin and started telling about all of yo= ur fine attributes and what a fine company Enron is!
He thinks you have d= one quiet well for yourself!
Anyway, when he finally let me say something= I informed him that you was also my mothers first cousin and the rest of = us claimed you also!
He had to think about that for a minute but finally = put the connections together.
Eddie has always been really good to my par= ents and to us.
I worked for him several years ago and he takes credit fo= r helping raise me!
=20 =20 Erin graduated from high school last Friday night.
She was one of the val= edictorians and we are very proud of her!
She accomplished this while wor= king part-time at First National Bank and she also completed 12 credit hou= rs of college this year.
She is planning on attending SMSU in Springfiel= d in the fall.
In the more immediate future, she plans to fly to Dallas t= he first of June to spend a week with one of her friends families.
She di= d this last year and they took her to San Antonio.
They really spoil her = and she has decided that Texas is the best place in the whole country!
=20 So how is your family?
Any new grandchildren?
We hope you and your famil= y are having a great year!
Keep in touch!
=20 Your cousin,=20 Janice Maxwell
| greeting from missouri |
Dad, I met with Peter Veruki at the Jones School of Administration at Rice last week and we had a great meeting.
Our timing is a little off (they want someone next spring and I want a position by Jan), but we are still talking.
There is also a position open for Director of Development of Rice University and I have contacted Malcolm Gillis and Christie Patrick happens to be meeting with him today so she is going to mention that I am interested.
There are also a couple of positions at UH which I am going to look into, so I am hopeful something good will come of all this.
Christie Patrick has been my one woman promoter, she is wonderful.
I'll keep you posted.
I love you Dad,
| A little good news |
Dear Mr. Lay, First of all....thanks.
I haven't been here as long as you, but I've been here a while...14yr.
It's been a great experience and I want you to know how much I appreciate you and your leadership.
I too will be here, as you say, "until they run me off" or until we get through the other side.
It's a tough situation and I guess there's no guarantee we'll make it but it won't be because we didn't give it all we had or that we didn't do the right thing.
You take care of yourself, Greg
| Just a note |
Ken, With your permission, Harry and I will plan to bring our golf clubs on the airplane on Tuesday.
I plan to buy one of those little traveling golf bags (very small) and carry only about 5 or 6 of my clubs with me.
Mick may or may not do the same.
It's your call if this is OK for the plane and whether or not you bring yours.
This way when Harry and I get to betting on the game, we will not have the quality of the rent clubs as an excuse for the quality of our game.
John
| The coming trip on May 29th |
Mr. Lay, I just want to thank you for all that you have done and all you will be doing to bring back Enron's reputation on the market.
We have been through these times before, and we will come back with your leadership.
You have my commitment.
Judy Knepshield Accounting Director
| Thank You |
Mr. Lay: I think you held a good meeting yesterday.
I respect your leadership and your not being shy to address the tough issues.
Your willingness to communicate and mix it up with the masses during the tough times is greatly appreciated.
Thanks..........T. J. Butler
| Employee Meeting |
Dear Mr. Lay, CNN International would like to request a telephone interview with at your earliest convenience regarding the ongoing dispute between Enron and India's Maharashtra state.
The available times for the live telephone interview would be 5:30pm CT, 6:30pm CT, and 7:30pm CT. We are hoping that your schedule will be open between the days of Tues. May 29th and Fri. June 1st, 2001.
For your information, CNN International programming reaches 26 million households across 29 countries in the Asia-Pacific region.
We look forward to your reply and hope to speak with you soon.
Warmest regards,
| Interview with CNN International |
Ken, I realize these are tough days for you.
I want you to know that I am glad you are there and that you are the key to getting things back on track.
I am certain that you have seen tough times before (unlike much of your management) and that you will LEAD Enron through this period.
From a bystander position (I left Enron in May), I encourage you to clearly bring all the issues to light immediately, take the lumps, and demonstrate to the community and the employees that necessary corrections will be made and made competently and forcibly.
Times like these define leaders and I know you have the courage and experience to hang in there.
If there is anything I can do to assist, let me know.
Jim Noles
| Hang in There |
Thanks for all you have done and for your continued efforts to see us through this difficulty.
I can not begin to imagine the weight of your burden, but please know that I and I am sure most employees are behind you 100% and appreciate all you have done and are doing.
I know you will see us through this and am delighted you are there to lead the endeavor.
Are you assuming more responsibility for our low stock price than you should?
Doesn't Ben Graham's Mister Market deserve most of the credit for our recent price swings?
I believe strongly in free markets.
However, for them to work there must be intelligent, well informed buyers and intelligent, well informed sellers operating in good faith.
I am not convinced the U.S stock market has seen many of either over the last three to five years!
My only hope is that the speculators, gamblers, short sellers, etc.
all loose their shirts and that Mr. Market finally gets his courage screwed to the hitching post!
Just get us through the exposures we have at our current market cap.
and we will be in great shape a few years from now.
Thanks again and best wishes.
| I'm behind you. |
I just wanted to let you know that I know that we are in a hot spot now, but I have all the confidence in you and Enron.
I trust in God, but I have a lot of confidence in you too.
You have kept Enron an ethical and decent company to deal with and to work for over the years.
I was gone from the company (laid off 5 years ago) but returned 13 months ago and I just celebrated my tenth anniversary with the company and I would like to say that I am so proud to be back working for Enron.
Those five years I was gone, I never lost my allegiance to thecompany even though I was no longer an employee, I felt as though I was still a member of the Enron family.
I have always felt that Enron cared about its employees and in talking with some of my co-workers, those who have been here for a while, feel the same as I do.
I want to let you know that I am praying for you and the company and I know you will bring us through this time of trouble with God's help.
Keep your spitits up.
God bless you.
Georgia Matula EES Data Management
| Confidence |
My dearest precious men, "Be of good courage, and He shall strengthen your heart, all you who hope in the Lord."
- Psalm 31:24 Courage belongs to those who know God, says the psalmist.
And, I say we all need to continually affirm God's power to protect us.
Today I have created a litany which affirms our faith in God's power, so that we need never be afraid.
Since our current situation strikes fear in our hearts, read this litany of courage and praise.
You need never be afraid!
When I am being tested beyond measure in my job responsibilities ...
I will put my trust in God.
When I am facing the greatest hurdles of my life...
The Lord gives me courage!
When I feel like I am completely alone...
The Lord is my light and salvation!
When I feel like the bottom is falling out... My heart shall know no fear!
God will save me!
When I have no other answers or solutions... God will send the help I need!
When I go through every terrifying minute of the day...
I am expecting the Lord to rescue me!
When I think failure is upon me...
I am brave, for God's power is greater than any situation I could possibly face today.
"FEAR NOT, FOR I HAVE REDEEMED YOU; I HAVE CALLED YOU BY YOUR NAME, KEN AND BEAU, YOU ARE MINE.
WHEN YOU GO THROUGH THE WATERS AND GREAT TROUBLE I WILL BE WITH YOU.
WHEN YOU GO THROUGH RIVERS, THEY SHALL NOT OVERFLOW YOU.
WHEN YOU WALK THROUGH THE FIRE YOU SHALL NOT BE BURNED, NOR THE FLAME SCORCH YOU.
FOR I AM THE LORD YOUR GOD, YOUR SAVIOR...YOU ARE PRECIOUS IN MY SIGHT, YOU HAVE BEEN HONORED, AND I HAVE LOVED YOU.
FEAR NOT, FOR I AM WITH YOU."
Isaiah 43:1-5 The bottom line of our life should be faith, not fear, so live today controlled by God-inspired positive thoughts!!!
Love and prayer, Linda/Mom
| Have Courage and Never be Afraid |
I have been reading about the current "flap" you have been dealing with and I was just writing to tell you "DON'T LET THE TURKEYS GET YOU DOWN'!!
I know you know it but sometimes it helps to hear it from someone else.
Good luck and keep your chin up.
I am sure it wll work out.
Sandy
| Tough Press (See Notice Below) |
Mr. Lay, I have always admired the company YOU created and the corporate culture you created.
As the CFO of a public company I understand, at least somewhat, of the struggles involved in being a public company.
I certainly empathize with you during this tough time.
Unfortunately people expect you to be perfect.
It's also easy for people outside of Enron to throw stones.
A lot of them are jealous outsiders that have been waiting for this for a long time.
Don't let them win, prove to them the power and strength of Enron and have the last laugh.
Regards, and I'll be laughing with you.
| (no subject) |
Mr. Lay, I only heard part of the employee meeting as I had to leave for the airport to return to Puerto Rico but wanted to say that I have all the confidence in the world that under your leadership Enron will return to the great company it is.
We have all been through tough times (I use to be a land drilling contractor from 1979 to 1988).
This company is sound, with good people who with the right leadership & direction can achieve the goal of being the best company in the world.
I have been working with Enron as a contractor since March 99 in Panama, Puerto Rico and the Bahamas (LNG project).
I report to Mariella Mahan and Greg Curran.
I really enjoy working with Enron and can assure you that you and Enron will always have my loyalty & confidence.
I am proud to say I work with Enron and want to do my part to bring this company back.
Sincerely,
| I am behind you |
Dear Ken, Good morning.
Today is a new day!
I know yesterday and the entire past week have been extremely difficult for you, your family, and the entire Enron family.
I just wanted you to know that I'm keeping you in my thoughts and prayers.
We all are extremely fortunate to have you as a leader and continue to support you stronger than ever as you navigate us through this time.
As you mentioned yesterday, times like these make us stronger and build character - so important for all employees to remember.
Please know that I will do whatever possible to carry that message forward.
Best Regards,
| All-Employee Meeting Follow-Up |
Ken, I want to tell you that your comments yesterday at the Employee Meeting were uplifting, encouraging and inspiring.
There are many of us here who are committed to Enron and support you fully.
Keep on the path...
Vanilla is just fine !!
Todd
| Employee meeting comment |
Ken, Thanks for having the call yesterday.
I am a believer in Enron and we are buying your debt.
Here's short feedback on the call.
I give the call a B-/C+ grade.
If you want a good example of a company call listen to the tougher calls So Cal Ed had for investors.
They talked with investors twice weekly for months.
There is an honestness and openness about the calls that worked to keep investors informed.
The angry exchange with the short seller was a blunder.
No matter what the question, no matter how stupid or obnoxious, the Enron answer should always be empathetic and pointedly factual.
Yes, you will have to open the kimono more than Enron ever has to restore confidence.
ENE has become more a financial institution, and less an energy company with hard assets.
You are in a confidence game pure and simple.
Any attempt at keeping things close to the vest will backfire and exacerbate the current crisis.
If you want to see disclosure in financials, look at Citi's... ENE is having an encounter session with the entire investment community.
This is not a time to be aggressive and smart.
It is a time to be open, honest and self-effacing.
Third party confirmation will go a long way in restoring confidence which means 1) Moody's maintains their rating or limits the change to a one-notch downgrade (bond rating) with stable outlook restored (the Moody's analyst is pissed you surprised with the write-off), 2) the SEC gives ENE a fairly clean report (no self-dealing found) on their transactions with private equity partnerships, 3) no more large surprise write-offs, 4) outside auditors continue with unqualified audit reports, 5) operating earnings targets are met for this year and next, and 6)fuller disclosure is made in quarterly releases.
Of course, if any fraud or malfeasance is found, you guys and ENE are history.
I have my ass on the line because I believe in ENE.
We have made investments.
ENE is in the shitter because of ENE's past communication and behavior mistakes.
Be humble, be smart, and change.
Good Luck!
Jeff P.S.
You state there is a Chinese wall between LJM and ENE.
Why in the world then would you have the same guy, Fastow, play key controlling roles in both organizations?
If you want to pay him, pay him.
Keep it simple.
I am glad Skilling is gone.
I wouldn't touch your company's debt while he was there.
I hated him and his attitude?.and my past exposure to him was extremely limited.
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Thank you.
| Yesterday's Call: Feedback |
Dad, I was talking with Kathleen this weekend and she had some ideas and suggestions about Enron.
I asked her to put them in writing so that I could share them with you.
I am attaching her memo.
Please keep in mind, she loves her job, these are just ideas to make it that much better.
I love you, Dad,
| Kathleen's Comments |
Ken, Thanks for putting the issues in perspective for all of us - i.e., it is not the lack of adversity, but rather one's response to adversity, that makes one great and builds one's character.
From what you said, it sounds like Enron has faced (with integrity) some serious adversity in the past and rallied admirably - certainly no reason to think the same will not happen this tough time.
Keep steering the boat - we'll all get through this!!
Thanks and God Bless You!
| Awesome Speech! |
Mr Lay: I am the Director of Field Operations for Houston Pipe Line Company and request your support on a simple, yet important matter.
As currently planned, the employees of Houston Pipe Line will transfer to American Electric Power effective June1.
Our field employees look forward to this change with the mixed emotions of new opportunities and challenges but equally with the pride that HPL was one of the original building blocks of the great company that Enron has become today.
My request is for a simple thank you from you to our employees for the work that they have done for Enron.
The professionalism and pride from the last 75 years will go with HPL ----- but not without remembering the significant achievements of Enron.
| Houston Pipel Line Company Departure |
We approach another 'Holiday Weekend' and far too many will forget the reason for "Memorial Day".
A comrade from years ago, now living in Bangkok, sends this address, really a prayer, that puts the day we honor our heroes in perspective.
It was delivered at the close of World War II , on an island that saw some of the fiercest fighting of that terrible war.
The message is timeless.
Jack Rains Houston *************************************************************************************************************************************************** 14 March 1945 U.S. Marine Corps, 5th Division, Cemetery, Iwo Jima Composed and delivered by Rabbi R. B. Gittlesohn, Chaplain, U.S.M.C.
This is perhaps the grimmest, and surely the holiest, task we have faced since D-Day.
Before us lie the bodies of comrades and friends.
Men, who until yesterday or last week, laughed with us, trained with us, men who were on the same ships with us, and went over the sides with us as we prepared to hit the beaches on this island, men who fought with us and feared with us.
Somewhere in this plot of ground there may lie the man who could have discovered the cure for cancer.
Under one of these Christian Crosses, or beneath a Jewish Star of David, there may rest now a man who was destined to be a great prophet ... to find the way, perhaps, for all to live in plenty.
Now they lie here silently in this sacred soil, and we gather to consecrate this earth in their memory.
To speak in memory of such men as these is not easy.
Of them, too, can it be said with utter truth: "The world will little note nor long remember what we say here.
It can never forget what they did here."
These men have done their job well.
They have paid the ghastly price of freedom.
If that freedom be once again lost, as it was after the last war, the unforgivable blame will be our, not theirs.
So it is we, the living, who are here to be dedicated and consecrated.
We dedicate ourselves, first, to live together in peace the way they fought and are buried in this war.
Here lie men who loved America because their ancestors generations ago helped in her founding, and other men who loved her with equal passion, because they themselves or their fathers escaped from oppression to her blessed shores.
Here lie officer and men, Blacks and Whites, Protestants and Catholics and Jews, together.
Here no man prefers another because of his faith or despises him because of his color.
Any man among us, the living, who fails to understand that, will thereby betray those who lie here dead.
To this, then, as our solemn, sacred duty, do we the living now dedicate ourselves: To the right of Protestants, Catholics and Jews, of White and Black men alike, to enjoy the democracy for which all of them have here paid the price.
To one thing more do we consecrate ourselves in memory of those who sleep beneath these crosses and stars.
This war, with all its frightful heartache and suffering, is but the beginning of our generation's struggle for democracy.
When the last battle has been won, there will those at home, as there were last time, who will want us to turn our backs in selfish isolation on the rest of organized humanity, and thus to sabotage the very peace for which we fight.
We promise to you who lie here: We will not do that!
When the last shot has been fired, there will still be those whose eyes are turned backward, not forward, who will be satisfied with those wide extremes of poverty and wealth in which the seeds of another war can be sown.
We promise you, our departed comrades: This, too, we will not permit.
This war has been fought by the common man!
We promise, by all that is sacred and holy, that your sons, the sons of miners and millers, the sons of farmers and workers, will inherit from your death the right to a living that is decent and secure.
Thus do we memorialize those who, having ceased living with us, now live within us.
Thus do we consecrate ourselves, the living, to carry on the struggle they began.
Too much blood has gone into this soil for us to let it lie barren.
Too much pain and heartache have fertilized the earth on which we stand.
We here solemnly swear: This shall not be in vain!
Out of this, and from the suffering and sorrow of those we mourn, this will come, we promise, the birth of a new freedom for the sons of men everywhere.
Amen Jack Rains
| A Reflection on Memorial Day |
Before the day gets away from me, I wanted to once again tell you how much I truly appreciate you and your dedication to our company, shareholders and employees.
You did an outstanding job today.
You caused tears in my eyes during the last employee meeting and today when you shared your heartbreak related to what we are now going through my heart again went out to you.
There is so much I could say, but I think to sum up how I feel is simply to state again that I appreciate you and value your integrity, commitment and honesty.
I know there is probably so much you wanted to say, but for sound business reasons simply can not share today.
To be honest, I did walk away not fully motivated for the next struggle.
It is not a lack of trust, confidence or commitment, but it is simply a natural human response to another blow to our reputation that simply takes time to fully absorb and then move on in a postive and productive manner.
You and all of Enron are in my prayers and I know that God will continue to keep his hand on you (and us) and guide us all through yet another personal growth opportunity.
Respectfully Cynthia Barrow Sr. Director of Benefits.
| thank you |
Dr. Lay, I just wanted to write to apologize on behalf of whomever sent you those hostile questions.
Even though we have some reasons to be angry, we do not have an excuse to be rude or disrespectful, specially to you.
I wanted you to know that those acts do not reflect the sentiments of the majority of Enron Employees.
We are embarrassed that you even had to address the question on the first place.
Please accept this apology and we hope to have you around for a long time, your words of encouragement really makes a difference, thank you.
Best regards,
| Apology |
Dear Mr. Lay, I know you are extremely busy so I will be quick: Thank you for being everything I have always known you to be.
Diana Peters P.S.
Please take care and I will remember you in my prayers
| CONFIDENTIAL |
October 23, 2001 Osmar Abib Managing Director Kenneth Lay Chairman and Chief Executive Officer Enron Dear Kenneth: On behalf of Credit Suisse First Boston, I would like to invite you to join us for the PGA Tour Championship which will be held at Champions Golf Club in Houston from Thursday, November 1st through Sunday November 4th.
The Tour Championship is an annual event which showcases the top 30 money winners and features one of the largest purses of the year on the PGA Tour.
Champions Golf Club, which has also hosted the Ryder Cup, the PGA Championship, the United States Open and the United States Amateur, will once again host the Tour Championship, following up on the extremely successful 1999 and 1997 Tour Championships.
The field this year should be very exciting, as it is likely to include Tiger Wood, David Duval, Phil Mickelson, Sergio Garcia and Davis Love III.
We would like you and a guest to join us for the 3rd and 4th rounds of the Tour Championship on Saturday and Sunday.
We will be hosting a private hospitality chalet adjacent to the 9th green, from which you will be able to watch the tournament or take a break from following your favorite players on the course.
We sponsored the same chalet for the 1997 and 1999 Tour Championships, and it provided a wonderful setting to view the players up-close on the 9th hole, as well as provide a cool environment to enjoy some food and drinks.
In order to assist us in our planning, we ask that you take a moment to respond via e-mail indicating your interest by Friday, October 26th.
We will provide additional details upon your acceptance.
We hope you will join us for this exciting event and we look forward to seeing you there.
Sincerely,
| An invitation to the 2001 PGA TOUR Championship |
Mr. Lay & Mr. Fastow, Just a word of encouragement, thank you for what you do for this company.
People are so quick to judge aren't we.
Stay strong, stay the course and most importantly, lean on the Lord for wisdom.
He will help you (us) through this time.
Sincerely,
| Thank you and Stay Strong |
After listening to your speech this morning, I am now, more than ever, proud to be an Enron Employee under your leadership.
Your commitment and fortitude under trying circumstances is always steady and going forward.
During all the past years of success and truly phenomenal growth I along with my co-workers have been richly rewarded.
Not only was I rewarded economically but also my friends and superiors contributed huge amounts of time and money toward others less fortunate and able to help themselves.
This is a direct reflection of your leadership and your giving back to the community.
This leadership by example is what will sustain us in the coming months as we build our stock back up.
I have no doubt build it up we will.
There is nothing more invigorating than a challenge to show your true courage and ambition.
Shifting blame and finding scapegoats has never been your style and I am very glad to see we are not starting down that road.
I feel the up coming Chairman's Award will be a great boost to morale.
People measure success very differently.
I feel just as successful today as a year ago because I answer to a higher authority than our stock price.
Enron's helping of our neighbors during the floods and the New Yorkers during their tragedies makes me very proud to work at this company.
Time is a better indicator of how well we persevered during these rather tumultuous times.
Here's to a better view in two thousand two.
Regards Sherry Butler
| My congratulations on your address to us this morning |
The following announcement was sent out from the ENW Office of the Chair on Sunday, October 21: As a follow-up to the Enron Net Works All Employee meeting on October 5, we are pleased to announce a number of organizational changes.
Beth Perlman, currently CIO for EA Systems, will work closely with Mark Pickering on a number of key projects for Enron Net Works.
Additionally, Beth plans to explore various commercial opportunities within Enron.
Replacing Beth in her current role will be Steve Hotte, currently CIO for EGS.
Anthony Dayao will continue as CIO for EES Systems.
In addition to his current responsibilities, Anthony will assume responsibility for creating a combined Wholesale/Retail Power Trading and Risk Management system.
Jeff Johnson will move into the new role of CIO for EGM/EIM Systems.
John Paskin will transfer to the Houston office from London to take up the new role of CIO for Corporate Systems.
His group will include the ISC, Enterprise Portal, Intranet Solutions, CRM strategy, Treasury Systems, Development Support and will matrix into HR IT Systems.
Continuing in their current positions are Inja Chun, CIO for EBS Systems; Paul Freeman, CIO for Enron Europe; Jay Webb, CIO for eCommerce, which now includes Commodity Logic Systems; and Jenny Rub, CIO for Infrastructure.
All of the above positions report into to Mark Pickering in the Office of the Chairman for Enron Net Works.
Transitions into their new positions will begin within the next two weeks and should be complete by the end of the year.
We are currently interviewing individuals to serve as CIO for EGS, as well as an individual to serve as head of our Enterprise Framework group.
We will keep you posted on the progress of these searches.
Please join us in congratulating all of these individuals on their new responsibilities.
| Organizational Announcement |
The Embassy called to confirm that the Indian Prime Minister now plans to be in Washington on November 7.
We talked of a meeting on November 8 with the Secretary of the PMO.
Who would be best to take the meeting?
The US-India Business Council is also planning a letter to the PM which would underscore the short time left for negotiations and the need for the GOI to designate a schedule for meeting.
One would think the PM would want to have made progress before arriving in Washington, but ... John
| Meeting in Washington Nov 8 with Indian PMO |
Good afternoon!
It's Friday, May 25, 2001.
Today's news is waiting for you!
>>>What is Howard talking about today?
HOWARD ALUMNUS, FORMER PROVOST NAMED TO PRESIDENCY
| What's New at Howard University (05/25/01) |
Ken, Greg, Mark - Thank you for your leadership over the last several weeks and this morning.
We appreciate it.
Following are some additional thoughts and some more detail on my comments from this morning: The leadership group in that room needs to feel the sense of responsibility to lead our businesses.
Everything we say & do - including all written, verbal and "body language" - are signals.
We must communicate and lead all day, every day.
As an organization, and as part of our culture, we lead with our chin - always have and probably always will.
We are going to take our share of bumps and bruises.
We have some great businesses here....and we are fortunate.
We have grown the size and profitability of our core businesses substantially, and in a market where many companies have not been as successful.
Most of our wounds are self - inflicted.
We can and should do a better job.
I believe this leadership team needs to make an absolute commitment in the following areas: Vision - define what we want this company to be in the next 3-5 years Value - as part of building the World's Leading Company, my vote is that we dedicate our energy towards building long term, sustainable value.
This is not about just creating value in the eyes of Wall Street - this is about creating real value, perhaps as defined by "after tax operating profit minus the real cost of capital".
Market cap will follow this type of economic value creation.
We need to measure it and incent people this way.
Teamwork - we are a leadership team.
I don't feel as though everyone buys into that nor is it clear that everyone around that table feels a sense of responsibility to lead across the business.
I would like to discuss how we improve as a team.
Many of our employees (at an average age of 33 years) have never been through: an economic downturn a global military conflict problems like the ones we are currently experiencing at Enron We need big time leadership now....from all who are around that table Clear Demonstration of our leadership - in clear view of our employees, customers and shareholders People - we must make sure to retain and enhance the interest of the employees that add value to Enron everyday.
These people need to believe - with our actions - that we are absolutely focused on making sure they have an environment that is conducive to building and creating value over the short, medium and long term.
The ball is in our court.
We have to lead and be perceived as credible leaders.
We've got to dig deep and get down the road - together.
If you wish, I would be pleased to discuss this further.
Thank you again for your leadership.
| Management & Leadership |
I want to take a moment to thank each of you for having a summer Analyst or Associate work on your team.
I also want to remind everyone what a high stakes activity this is for Enron.
Based on your recommendation, we will make offers at the end of the summer to those interns who perform, and who you endorse as a potential future member of your team.
Those interns who have had a good experience and accept our offer will be the lowest risk hires we make - from any source.
We will have effectively interviewed and watched them work for 2-3 months.
They also have the potential to be the most effective advocates and talent scouts we have, when they return to campus.
On the flip side, those who don't have meaningful assignments, or have bad experiences during the summer can severely hurt our efforts.
Thank you again for being part of this very important activity.
If you have any questions, or if areas of concern arise during the summer, please contact Ted Bland (x35275), Traci Warner (x33242) or me (x36671).
| Analyst & Associate Program - Summer Interns |
Dear Shareholders, Several months have passed since I last told you of the pending sale of Intelligent Diagnostics Inc (formerly known as askRed.com or DrRedDuke Inc) to Dynasty Technologies.
Unfortunately, the deal originally contemplated appears unlikely due to adverse market conditions and financing difficulties, which seem to be seriously impacting Dynasty's business just like many other businesses.
Dynasty has been shrinking its operations and moving some of their operation overseas.
We are currently exploring a new business plan with Dynasty that would involve a newly created company spun off from Dynasty as the principal vehicle for development of the diagnostic software and related products.
Such an approach may be the best way to proceed.
However, a newly created entity will face all of the usual problems as any other startup, plus it will be doing so in a harsh economic environment.
If you have any suggestions, please advise.
I regret that we still have this business in a state of limbo and wish I could offer some encouraging news based on signs in the marketplace.
I'm sure you are seeing the same bleak outlook that the WEDGE team, Dr. Casscells and I are encountering as we continue to chase leads for new sources of funds.
I will send more updates as the possibilities evolve.
Please feel free to call me at any time....713 332 6856 (office) 713 667 5420 (home).
Sincerely,
| Update on Intelligent Diagnostics |
Dear Enron's topmanagement, We are not only concerned on the crashed stock but also Enron's situation in Japan.
The business here is too difficult!!!
How do you know the current situation here: > Bad Reputation in Japan - if you say you are from Enron people will say "No" > Ignorance of Japanese Business - wasting many time on TOCOM, a market controlled by mafia, those minor comnies want to cheat Enron's money > Unsatisfactory business environment - deregulation will not proceed in three years > Poor manegment - the office is like a kindergarden, the so called "experts" have serious discrimmination with local staff; They do nothing themselves just ask the local "slave" to work hard and they go to vacation or business trip > "Sato" means sweet in Japanese but Sato Project is not so sweet as you think!
Have you expected another "E-power"?
I have to say we are so dispointed with Enron!!!!
Enron Japan is at the entrance of "Bermuda Triangle", we worry when will it dispear?
Sato Enron Japan
| Enron Japan is at the entrance of "Bermuda Triangle"!!! |
Gavyn Davies, via Helen Turley, has asked me to give you some guidance as to what you might include in your presentations at the meeting on October 31st.
I do so with trepidation, since I am sure that you know more about your subject than I do, so please regard the following merely as suggestions to be ignored if you deem it appropriate to do so.
We have blocked out two hours (9-11AM) to discuss market opportunities for Enron in Spain and Germany.
My understanding is that Oscar will go first, as he has a plane to catch.
I would suggest that each of you plan on speaking for about 30 (no more than 40) minutes, so as to leave time for questions from what will be a lively audience of Enron executives.
You might want to begin with a general description of the political situation, followed by a description of the present and future state of the economy in each country.
Then, you might turn to a more specific discussion of matters of interest to Enron: the state of regulation and deregulation of energy markets, the areas you consider should be of interest to Enron as business opportunities, etc.
I do hope this is of help
| Enron meeting |
Ken, I've sent your letter to the Governor and top legislators.
I'm also working with David Freeman in the governor's office as well to try to keep sce out of bankruptcy.
It's unfortunate that government doesn't work more like business.
There seems to be no sense of urgency in finding the facts to make an intelligent decision, just people who don't want to make any decision even to do that.
On a side note, Propel develops software that makes it much easier to develop 24x7 mission critical systems including very advanced data management.
Is there someone who you'd recommend I can talk with on the energy trading side of enron to explore the potential of our helping you make your systems more reliable/scalable/easier to maintain?
Thanks!
| calif power letter |
=09=09 Integrating Lean & Six Sigma Seminar Presented by the Lean Six S= igma Institute =09 =09 What You Can Expect From This Seminar: Become a Certified Lean Six Sig= ma Master!
A world-class company cannot afford to overlook the global m= etric of Six Sigma to reduce variation and waste.
These companies are also = using lean techniques to increase throughput and reduce cycle times.
This c= ourse shows you how to integrate Lean and Six Sigma tools to achieve busine= ss performance excellence.
You'll attend four intensive weeks of integrated= Lean and Six Sigma instruction--one week of seminar per month for four mon=
| KCG-SIX SIGMA SEMINAR |
Dear Sir/Madam, This will introduce an exceptional Candidate for an Executive Level Information Security position.
He has 19 years of VP level Information Security development, implementation and management at several of the most technologically advanced financial institutions including a $6 Billion/year stock brokerage (1995 - 2001), a $12 billion/year financial services conglomerate with interests in mutual funds, life insurance, banking and retirement services ( 1990- 1995), and a $50 billion/year bank( 1989-1990).
He holds an MS in Systems Engineering and a BS in Mathematics.
PhD course work completed.
He is a Certified Information Systems Security Professional ( CISSP) and a Registered Brokerage Rep: Series 7 and Series 63.
His primary love is building global Information Security programs and departments.
He is receptive to working for smaller institutions and to relocation.
For additional information on this candidate or to enquire about other Information Security executives please contact Gary Erlinger.
Note: CIO Club is a Fee Based Staffing Organization.
Regards
| Information Security Executive -101901 |
Received the letter to Mark Pana at EES from Emil Pena regarding the purchase of FASER software.
Dan Leff at EES will follow-up on this since that product is at EES currently.
I will talk with Dan, if necessary, to see if he needs any assistance form Net Works.
Thanks.
| Emil Pena |
In order to prepare a paper for my graduate class on Leadership, I recently had an opportunity to visit with Stan Horton.
Stan provided some wonderful insight on his leadership skills and gave you as an example of a superb leader.
He suggested that I also speak with about your views on leadership.
Some questions that would be of interest would be what events you think coelesced to bring you to the chairmanship of Enron; what developmental process you knowingly (or unknowingly) went through in your early years and what challenges have you encountered that made a signficant change in your career.
If you would have fifteen minutes or so and would be amenable, I would much appreciate visiting with you in the next two-three weeks.
If you wish, I could provide you questions in advance to maximize your time.
Thank you for considering this request.
| Interview |
For the first time in 22 years of service for Enron I'm ashamed to admit th= at I work for Enron!
I have lost all respect for Enron Senior Management a= nd agree with the Financial Analyst when they say that Enron Senior Managem= ent can not be trusted.
Ethics and Morals are either something everyone el= se needs to have except Senior Management or somewhere along the way Senior= Management started believing the end justifies the means.
The communicati= on the Employee's have received over the last few years about values such a= s Respect, Integrity, Communication and excellence must be propaganda inten= ded to get Employee's to believe Senior Management really supported these v= alues so that no one would really notice that their actions represented som= ething just the opposite.
I can not believe that Senior Management lacks the understanding of human n= ature to totally ignore the fact that if someone does not trust what you ha= ve said in the past you should not try and conceal pertinent information in= the future.
Then to allow an Enron Spokesperson to speak for Enron with t= he statement "It's just a balance-sheet issue" implies to me that this ind= ividual does not know what a Balance Sheet or Income Statement is and certa= inly should not be speaking to the public.
If you are going to play the ga= me of lying, cheating and stealing at least be intelligent enough to presen= t a plausible story.
To use phrases such as it was a hedge against fluctua= ting values in some of Enron's broadband telecommunications and other techn= ology investments is a complete insult to my intelligence and to the defini= tion of the word "HEDGE".
A hedge by definition implies that the upside an= d downside exposure has been limited.
It frightens me that we are out aski= ng customers to let Enron help them "HEDGE" their risk when I'm not sure En= ron's Senior Management understands what a hedge means?
I'm also confused as to the personal financial involvement of Andy Fastow i= n the investment vehicle that generated this write down.
I must be confuse= d in that as a Trader Enron has asked me to sign documents declaring that I= will not have any personal financial involvement in anything involving the= Natural Gas Business.
This must be an example of as my father used to say= " do as I say not as I do"?
I guess we need to have audits performed of Se= nior Managements financial interest to insure their actions are as good as = their word?
The fact that Senior Management and the ENE Board of Directors knew these t= ransactions were being used to manipulate earnings and the stock price and = took advantage of that knowledge to sell their ENE stock options in my opin= ion is "CRIMINAL".
It provides me no comfort to know that the biggest perp= etrators of this fraud have left Enron in recent months.
These individuals= have stolen billions of dollars from ENE stockholders and Employees and ne= ed to pay the price for such fraudulent activity.
They are set for life, h= aving all the money they could ever need, while Employees and Stockholders = have lost their life savings.
You have completely failed at the job you we= re hired to perform.
If this type of activity would have occurred farther = down the organization no one would hesitate to fire the individuals involve= d and to institute criminal charges.
=20 I for one can not wait until the All Employee meeting next week.
I do not = think anyone wants to hear about third quarter results because how could we= trust what is said anyway.
Instead I feel you owe the ENE Employee's a th= orough explanation of how you failed to perform your responsibilities, what= actions are going to be taken and most of all apologize for the job perfor= mance to date.=20
| Financial Disclosure of $1.2 Billion Equity Adjustment |
Dear Mitch and Ken, I wanted you to know that I am approaching Sidney Taurel about joining the AEI Board of Trustees (letter pasted below).
If he should ask your opinion about this, I hope you will be brutally candid, and therefore enthusiastic and encouraging.
Best,
| AEI Board--Sidney Taurel |
Dear Mr Lay, I write to you as Chairman and Chief Executive Officer of The Enron Corporation because I would like you to know that I am on my second period of sick leave in a year due to work related stress.
A year ago I was apologised to by the Human Resources Department and told that they would not allow it to happen again.
Through constant pressure and the unfair way in which I have been treated, the advice of my doctor and counsellor, as they are concerned with my health, was to accept the voluntary redundancy which had been offered to my colleagues and myself recently.
Though due to my exceptional circumstances I wrote the attached letter.
Today I received the attached response and I feel totally devastated that Enron Europe will not compensate me fairly for how they have affected my life and that of my family's.
I read in Enron's literature that you care about your employees and their families, and feel that your code of ethics should have offered me protection against the circumstances that I find myself in, but to my complete and utter dismay I find this is not the case and in my experience I have suffered a great deal and this seems to have been totally ignored in the response letter.
I haven't once been contacted by Enron Europe to see how I'm coping and give me any support whatsoever.
They are showing no care or concern for me or my family.
I write to you for help in this matter and to conclude this stressful situation that I find myself in due to your company.
Under the circumstances and increased stress that the response letter has put upon me, I would be most grateful if you would respond to me as soon as possible.
Yours sincerely
| Enron Metals Ltd (Enron Europe Office) |
October 18, 2001 Dear Ken, Ratan Tata, who attended Hank Greenberg's October 18 International Advisory Board meeting, and I talked on the margins about the Enron dispute.
Ratan confirmed that Tata is interested in helping with a solution, provided that Indian government and the banks step in, deal with the equity and hold the investment while Tata works out acquisition details.
Tata also confirmed that he has been approached by the Prime Minister's office and Tarun Das but the sticking points will include equity price, costs, etc.
Ratan knows his negotiation is not with Enron.
He agreed with me that you and he have shared interests in a settlement and that if you wish an informal conversation with him to ensure he and Enron are on the same page, he is open to a phone call or a meeting at a place and time convenient.
In the event that such a conversation would not cross your wires, it seemed to me that if Tata and Enron are driving for a settlement from different directions, your interests would be served.
I am sensitive to the fact that I am "out of the loop" and hope that my suggestion that you and Ratan talk does not complicate matters.
Should you wish to speak with Ratan, his number in Bombay is 011 91 22 204 9131 or 3725.
He leaves New York for Boston today and from there, he returns to India.
Regards,
| MESSAGE FROM AMBASSADOR WISNER |
Please plan to attend the Quarterly Managing Director Meeting scheduled for Monday, October 22.
An agenda will be distributed at the meeting.
Meeting details are as follows: Monday, October 22 8:30 - Noon Hyatt Regency Dogwood Room (located on the 3rd floor) A video connection will be made from the London office.
Please call if you have any questions.
Joannie 3-1769
| Quarterly Managing Director Meeting - Monday, October 22 |
Dear Mr. Lay, I first wanted to thank you for taking the time to read this e-mail.
I know that you are extremely busy and receive numerous requests on a daily basis.
I have been an employee with Enron for almost two years.
I have spent most of my time on the Liquids trading floor as a Risk Manager for the financial crude book.
I was recently recruited by Fred Lagrasta to work in his midmarketing group.
I am responsible for supporting our originators in New York.
My years at Enron have taught me not only the business aspects of the energy industry, but to strive to pursue your dreams and accept nothing but the best from yourself.
It has been a dream of mine to attend law school since I was little.
II feel like I am at the time in my life that I can sucessfully pursue this dream.
I am interested in studying corporate law at the University of Houston Law Center and participating in their part-time program while maintaining my employment with Enron.
I recently spoke with Don Schroeder, a physical crude trader here at Enron, who suggested sending you an e-mail asking if you would be so kind as to write a letter of recommendation on my behalf.
I would be honored if you would write the university a letter recommending me to their part-time program.
I am hoping to make the early decision deadline of November 1st.
I understand that you do not know me at all, however I would be more than willing to come visit with you if you had time and/or forward you my resume and performance evaluations.
I know that I would represent Enron well by attending the University of Houston.
I worked full-time throughout my college career at Texas A&M University to help finance my education.
I am a hard worker and take pride in everything that I do.
I know that I will be successful in law school as well as excel with my career at Enron.
Again, I greatly appreciate you taking the time to read this request and your consideration.
I look forward to hearing from you soon.
Sincerely,
| University of Houston Law Center |
KLAY@ENRON.COM Invited CE World authors, Many of you have heard by now that ASCE is hosting the 1st Virtual World Congress for Civil Engineering, CE World (www.ceworld.org).
The call-for-content was issued earlier this summer and the deadline for submission was September 27, 2001.
Although this deadline has passed, we are still accepting contributions.
Go to "Submit Abstracts" on the CE World web site.
As Content Area Manager for the Geo-Technology area, I invite you to visit their website to find out more and to submit a contribution.
Most content is expected to be in the form of papers, although you are challenged to "think outside the box" by including other forms of media.
Remember this is a virtual conference-you do not need to attend; you visit the Congress from the web.
This is a good opportunity to show case your work without having to travel to present it.
| CE World Call for Content |
Good afternoon.
This email serves as a reminder that the next i2 Board of Directors meeting is Wednesday, October 24.
PLEASE NOTE TIME ADJUSTMENT BELOW.
THIS IS TO ALLOW FOR DISCUSSION OF 2002 OPERATIONAL PLANS.
Logistics are as follows: Location: One i2 Place, Luna Road, Dallas Time: 8:00 a.m. - 3:00 p.m. CST Room: 6th Floor Green Conference Room.
Continental breakfast and hot lunch will be served.
Board packages are expected to be shipped Friday, for Monday delivery.
Admins, if your managers will be at locations other than their respective offices on Monday, please let me know so that I may direct the shipment accordingly.
Thank you.
Please feel free to contact either Keith Larney at 469-357-4497, or me at the number below, if you should have any questions.
Thank you.
| REMINDER - OCTOBER 24 BOARD MEETING - REMINDER |
Kenneth, Yesterday I received a letter in the mail from Enron.
Appears Enron still thinks I am an employee.
I am not.
Have not been for about a year now.
You might want to double check your records and databases.
Thanks
| Not an employee |
Dear Ken, As an Enron employee in the UK I would like to say thank you for taking the trouble of writing personally to your employees.
The events of 11 September have shocked the world and forced our governments to take very difficult and far reaching decisions.
As somebody from the UK I would like to say how we support President Bush and admire his handling of the very difficult decisions which have had to be made.
We are pleased that Prime Minister Blair has totally backed these decisions and offered support.
On a personal note we have friends in Boston and our concern for them highlighted the close bond between our two countries.
The American citizens stranded in Britain at that time felt supported in their loss, grief and bewilderment.
Our Queen took the initiative of the Horse Guards playing 'The Star Spangled Banner' and a melody of American tunes which was very emotional.
The Archbishop of Canterbury said some inspired words regarding the Statue of Liberty and all that it stands for.
Your position at Enron is at the top, mine is miniscule but we both want to say God Bless America.
Regards
| 11 September |
Dear Board Members: Lekha and I are hosting a Customer Appreciation Dinner at my house and would like to invite you and your spouse.
The dinner is by special invitation to our top 100 customers.
It is scheduled the evening of our Board Meeting, Wed., 24 Oct at 7pm.
The next morning we will have our Five.Two presentation.
You are invited to attend any of these functions.
Please let me know if you are able to attend.
We would be happy to arrange any transportation/hotel that you may need.
Regards,
| Invitation |
The attached press release was issued today over Business Wire at approximately 5:56 pm (EST) Indy time.
We will keep you advised of developments.
Alecia DeCoudreaux - FDA Adv Comm -- split FINAL.doc
| Press Release |
In order to ensure that our communications with the investment community are consistent, Stephen Moore of Moody's and I have agreed to publicly state the following as it pertains to the Moody's rating action taken today: Full Review To Occur - The action is intended to be the catalyst for a full review of our business operations to occur in the coming months.
The company's appropriate rating will be determined during this time frame; Primary Areas of Concern - Moody's will be focusing on the following items during the review: Potential Future Equity Write downs: Dhabol California Broadband Fiber Network Wessex/Azurix Slow Progress in Asset Sales - we have been discussing sales for the past 18 months with limited closings Material Working Capital/Margin Expansion - has resulting in negative cash flow from operations The Equity Adjustment - Moody's was unaware of the potential of an equity adjustment of this magnitude Please let me know if you would like to discuss any of the points in detail.
Regards:
| Moody's Basis for Placing Enron Securities on "Review for Downgrade" |
John thought you might be interested in the following from the credit markets....
Play by play during the call on the 5yr Enron Credit Default Swaps from Morgan Stanley: 1.
5Y BIDS GETTING HIT ON OPENING AS EARNINGS NEWS LOOKED LIKE CLEANING HOUSE.
250.
2.
DURING THE CONFERENCE CALL; WHICH APPARENTLY WAS UNCLEAR, TICKED OUT 255,260,265.
3.
LAY INDICATED NEAR END OF CONFERENCE "NO RATINGS ACTION ANTICIPATED".
MINUTE CONFERENCE ENDED MOODY'S WATCH NEWS RELEASED.
280 BID.
4.
LAY ALSO MENTIONED 3Q NEG CASH FLOW DUE TO SOME CONTRACT ROLLOFF.
UNCLEAR MESSSAGE.
5.
ENE SAYS COMMITTED TO "INV GRADE" RATHER THAN "A" 280/325 Summary from Morgan Stanley after the call: CREDIT DERIVATIVE UPDATE: ENRON CORP AFTER THE NEWS THIS AM ($1 BIL.
CHARGE), THE COMPANY HOSTED A CALL AT 10AM NY TIME.
THE CALL DID NOT GO WELL & ENRON SPREADS ARE HEADING WIDER IN CREDIT DERIVATIVE LAND.
MKTS ARE SPOOKED B/C: 1) MOODY'S WATCHLISTED CO NEGATIVE, 2) ENE STATED "THEY ARE COMMITED TO INVESTMENT GRADE RATING," WHICH IS A CHANGE FROM THE SINGLE-A BOGEY THEY ONCE EXTOLED, 3) CO. DID NOT ADDRESS ALL LIQUIDITY CONCERNS, AND 4) MORE CHARGES COMING?
5YR MARKETS: ENE (PRE-WTC): 165/185 ENE (8AM TODAY): 240/260 ENE (WEEK AGO): 250/300 **ENE NOW: 275/350 Clearly the above are a function of what people think they heard...I did not alter any of the email.
In general MSDW likes Enron credit but this is how they see the market.
Enron is one of the most actively traded names in the credit derivative market.
Let me know if you want updates as the market gets more clarity and works throught the details
| reaction from the credit markets on the earnings call |
On Thursday, May 25 you were repaid $2,535,786.72 from the refinance of Da= vid's home ($1mm) and my home ($1,535,786).
We forwarded the funds to pay= down your personal Bank of Amercia (BA) LOC.
The Family Partnership had t= o borrow from your personal line at BA $200,000 to cover the $588k cash ca= ll for SRE properties.
With today's closing prices, the Family Partnershi= p's available BA line is between $25k-$50, which is an estimate because mu= tual funds don't post their NAVs until around 5pm (Central time).
That ma= kes the Partnership's total payable to KLL/LPL personal line at $1,303,50= 0.
=20 I contacted the guys regarding the BBT Fund (Bass family).
Per our conver= sation, I told them that the timing was bad, but we did not want to miss o= ut before they close the fund.
I indicated that our initial investment wo= uld be the following: KLL/LPL personal $250,000; KLL & LPL Investments, Lt= d. $100,000; Foundation ?
(possibly $100,000).
The initial investment amo= unt for the partnership, and possibly the foundation, are about as low as = we can go if we want to get into the fund.
I am aware that the Foundation= is waiting to as long as possible to pay out any contributions os I wasn'= t sure if we wanted to make something happen there.
Also, I indicated tha= t we would prefer to fund as late as possible, which looks like July .
I= f we decide on doing something in the foundation they have an Offshore Par= tnership to eliminate the tax implications of UBIT.
The Offshore Partners= hip is run exactly the same as the Onshore version, but is unitized and pa= ys a dividend rather than distributions to the investors.
Let me know if = the amounts (above) to invest are okay with you and if you want anything i= n the Foundation.
| Update - May 25, 2001 |
Pls.
join a meeting in Greg's office today at 4:15 p.m. today to discuss management's recommendation to the Board of Directors on Project Southwood.
Thanks.
Paula
| Project Southwood Meeting |
Dad and Linda, Just checking on return dates from Aspen for Christmas so we can make our reservations.
JL and I are going with you on the 22nd, but probably returning on Jan. 1 and want to know if we should make a commercial reservation or alternative flight???
Thanks,
| Christmas |
We'll get pointed questions related to Europe and broadband thanks to Steve Bergstrom.
Suggest we answer that we feel confident that the first mover advantage will give us superior returns in the long run.
USA: INTERVIEW-Dynegy feels gradual approach in Europe vindicated.
By Andrew Kelly 10/15/2001 Reuters English News Service (C) Reuters Limited 2001.
HOUSTON, Oct 15 (Reuters) - Natural gas and power marketer Dynegy Inc. said on Monday it felt vindicated in its step-by-step approach to building a business in Europe in view of recent retrenchments by rival Houston-based companies.
Dynegy recently opened an office in Madrid to market natural gas, electricity and derivatives.
Spain is the fifth country in continental Europe where Dynegy has set up an office since it started up its European operations in Britain in 1994.
By contrast Enron Corp. has recently announced plans to cut staffing at its European operations by 5 percent to 10 percent amid concerns about slow and piecemeal progress toward deregulation of European natural gas and electricity markets.
"Enron threw 800 bodies at it and tried to do it in a hurry.
We've been going at it much more slowly because we thought it would take some time," Dynegy President and Chief Operating Officer Steve Bergstrom told Reuters in an interview.
Another Dynegy rival, Reliant Resources Inc., said last month it was considering a possible sale of its electricity generation business in the Netherlands.
"Reliant bought one utility in one country and realized that's not really the way to enter the market in Europe," Bergstrom said of the move which cost Reliant $2.4 billion.
Bergstrom said his own company differed with Enron and Reliant in the execution of its entry into the European market, rather than in its assessment of the market's potential.
"We've gone at this much more cautiously.
We've made sure that we staff it appropriately for the market timing and we think we've done it the right way," he said.
Bergstrom said there were similar differences between Dynegy and Enron's approach to the broadband telecommunications market where Enron has also cut jobs after admitting that it probably overestimated the market's short-term potential.
"They're having to retrench, but you're not hearing them give up on the telecommunications business.
Our cost structure is so much less than theirs, that's why we're a lot more optimistic, because they have to go through cutting a bunch of costs whereas we never added those costs," he said.
Dynegy reported on Monday its third-quarter net earnings rose 62 percent as its wholesale energy business nearly doubled its returns.
Dynegy has said it expects its broadband business, created late last year, to generate a positive net income next year.
The business posted a $15 million loss in the third quarter of 2001.
Dynegy's Chief Executive Officer Chuck Watson told analysts in a conference call on Monday that the unit's revenues had doubled in the latest quarter to $8 million.
"We believe the industry touched the bottom in this communications market in the third quarter, with bandwidth demand picking up sharply in the foreseeable future," Watson said.
Copyright ?
2000 Dow Jones & Company, Inc. All Rights Reserved.
| Reuters story on Dynegy 3Q earnings |
Dear Ken, I hope you 'visit' with the Governor was as fruitful as mine.
we are very favorably supported in our development of a Regional Energy Efficiency Initiative ... an approach to defining and delivering sustainable energy efficiency.
(not conservation!)
There is an opportunity to discuss a way in which Enron could perhaps become involved in a very significant set of new developments within the sphere of influence in which I operate.
If you wish to 'look into' this .. let me know.
I believe such an endeavor during this difficult time might well stand you in good stead .. and its a way to enter the end use services business.
I look forward to getting to Aspen for the AI conference.
John - EX.
COMM.
REPORT DEC 2000.doc
| Calif.'s Energy Future |
All, Attached, for your information, is a 2 page financial and statistical fact sheet for EGM (as a consolidated unit and for each business unit).
I obviously would have liked our gross margin and EBIT to be a lot larger but all the other facts show enormous growth and progress.
I wanted to at least get it into your hands in case you needed a quick reference.
Thanks,
| EGM Q3 fact sheet |
This message contains the text of Sidney Weintraub's Issues in International Political Economy for the month of October.
This month, Dr. Weintraub focuses on the argument that the treatment for the cause of the terrorist attacks lies in reducing poverty.
To go directly to the web version, click on:
| CSIS Column on Treating the Causes of the Terrorist Attack |
Ken - As you know, we had several issues that needed to get tied down before the BoD reconvenes to review Project Southwood.
Both Jeff McMahon (deal timing) and Rick Causey (goodwill) are ready.
Andy Fastow expects to have a read from the agencies very soon (likely late today).
As soon as I hear from Andy, I will begin polling and will set the date, hopefully, for early next week.
At this time, I am not aware of any additional items that need to be addressed by the Board in the upcoming meeting.
We need to confirm the 2002 BoD calendar but can do that in the regularly scheduled meeting in Dec.
Thanks, Paula
| Next BoD Meeting |
I received the FreightDesk Technologies packet from you that was sent to you by Rob Quartel.
Since they are asking for Enron to be a strategic investor, I will run it by Kevin Garland's Investment group.
I will also run it by Dan Reck's Freight group, which sits within EGM.
We will get back with Rob.
Also, we had an Enron Net Works all employee meeting recently at the Hyatt (October 5th).
Over 1000 employees attended.
The goal was to communicate to my employees what is Enron Net Works and our vision going forward.
I believe it went very well.
Mary Clark, Internal Communications attended as well.
If you would like, we have a 13 minute video that you may want to see.
It is 3 minutes of funny stuff that we ran up front while people were coming in and 10 minutes of what ENW is with the message being we are a service company.
Let me know if you would like a copy or if you want to arrange 15 minutes of your time for me to show it to you.
Thanks.
| Rob Quartel and ENW All Employee Meeting Video |
Meherwan, I would be happy to participate in the Gas Turbine/Condition Monitoring conference and workshop.
Could we arrange a time to discuss the details later his week?
Are you available on Wed 17 Oct AM?
Rick Jones
| Conference & workshop |
I understand that some of you who attended the October 11 meeting of the RFF Board of Directors requested a copy of Ramanan Laxminarayan's presentation on the economics of antibiotic resistance.
Please let me know if you would like to receive a copy and if so, if you prefer to receive the slides in hard copy or via email.
Thanks so much!
Regards,
| Antibiotic Resistance Presentation |
Ken I understand a Turkish industrialist named Nuri ?olakoglu has been in contact with you through Bill Miller and possibly Jerry Giest.
Colakoglu is an extremely wealthy and well regarded Turkish industrialist who has aggressively expanded into the Turkish energy sector.
We have had a number of meetings with Colakoglu over the years and although we appreciate his potential prospects for the future we do not see a win-win opporutnity with his organization at this time.
We expect he may try and contact you so wanted to let you know in advnace the background on his proposal.
Colakoglu has proposed that, in order to manage our Trakya payment issue, Enron utilize the Arcos turbines to build, on balance sheet, a 1200 MW power plant at the tailgate of his recently completed specualtive LNG regas facility in Turkey.
The plant would be part of a comprehensive proposal to the Turkish Ministry of Energy and Natural Resources to reduce the prices at Trakya, in exchange for an agreement by TETTA?
(the new Turkish power trading company resulting from the split up of TEA?, the former electricity monopoly) to purchase power from the new facility.
All three plants would be fuelled by LNG provided by Enron and tolled through the Colakoglu's regas facility.
In essence, Nuri wants us to build a power station as soon as possible to use the capacity at his LNG terminal which is now idle and has the potential to be a white elephant.
Our team has explained to Colakoglu that they thought the fact that the proposal relied totally on TETTA?
's credit was fatal, but that they would discuss it with EEL management.
Lloyd Wantschek has responded to Colakoglu in the attached letter (we have highlighted the relevant portion for your information).
| Turkish industrialist Nuri Coalkoglu |
The following reports have been waiting for your approval for more than 4 days.
Please review.
Owner: Gene E Humphrey Report Name: Gene Humphrey Days In Mgr.
Queue: 5
| Expense Reports Awaiting Your Approval |
Ken, As you'll recall, during the September 10th advisory board meeting, we discussed the need for strong, senior-level support to ensure an opportunity for Xcelerator's success.
At the conclusion of the meeting, we agreed you and Greg Whalley would discuss the support level with the Management Committee on the 13th.
Of course, the sad events of the 11th understandably delayed that timeline.
Since September 10th, I've revisited the Xcelerator with several members of the Management Committee including Louise Kitchen, John Lovorato, Jim Fallon, John Sheriff, and Andy Fastow.
In summary, they are supportive contingent on support from you and Greg.
Additionally, other Xcelerator board members are supportive - specifically Jeff Donahue and Kevin Garland - but all agree the sincere support from you and Greg will be necessary for success.
Greg Whalley and I have also discussed the Xcelerator on two occasions.
Greg is concerned that I will be unable to attract good talent from within Enron to this "risky" initiative, especially given the trajectory of the economy and scarcity of new jobs within the company.
I agree with him.
Greg asked if I would try the Xcelerator understanding that most if not all of the full-time team members would need to be hired from the outside.
Although not optimal, I think it is doable and told him I'd be willing to proceed under those circumstances.
While Greg was quite supportive, he was appropriately distracted by the upcoming board meeting and close of the quarter.
As a result, he and I are planning on discussing the future of the Xcelerator this Tuesday.
(Of course, the earnings announcement may delay that discussion to next week.)
As I mentioned in the Xcelerator's board meeting, I am excited about this opportunity and am committed to giving it my all, with the support of the senior team.
This effort could create tremendous value for Enron.
However, I have no delusions about how difficult it will be and the patience it will require.
If we are successful over '02, we will definitely create value for our shareholders, but are almost certain to be a drag on earnings -- albeit a small one.
If you and Greg are not able to be supportive, then let's acknowledge that and discontinue the Xcelerator's operations.
As we discussed on the 10th, lukewarm senior support will not be sufficient for success.
| Quick update: status of the Xcelerator |
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