I never heard back from you so I thought it best to drop a note. 

My interest in having a discussion with you are two fold:

1) I am currently making the resizing and structuring decisions for the 
Argentine business. There exist a strong bias towards consolidation of 
resources and headcount reduction. This is a decision of necessity and 
immediacy which does not afford everyone the opportunity to fully understand 
the markets that are being affected. This strategy clearly makes sense but I 
would like to make sure we avoid destroying value as this massive wave hits 
the beach.  

I need to better understand the balance between the aggregation of 
intellectual capital in Sao Paulo and the ability to maintain a credible 
commercial presence in an emerging market such as Argentina. If the reality 
is to shut down Argentina for the sake of emphasizing focus on Brazil fine. 
Then we should try to package and sell what we have already built to maximize 
value. We probably have gone too far to achieve this at this point. 

But I believe what we are trying to achieve is a liquid Argentina focus from 
Brazil. The risk here is we take this structure too far the other direction 
(IE "The Wave"). Resizing to match commercial opportunity makes good sense 
but when we take it too far we risk giving the market the perception we are 
not serious which will immediately diminish our credibility and our ability 
to participate, transact and advance as a participant in the Argentine 
market. This corresponding destroys value in what we have achieved to date 
and what we are trying to achieve currently.

I just need to get this model clear in my mind as I finalize the Argentina 
structure and I have not had a chance to hear your thoughts directly. 

2) Joe has also asked me to become part of the Sao Paulo effort once I finish 
getting Argentina straightened out. To give him an answer I would be 
interested in your confidential opinion on the best utilization of my skills 
and ability in terms of Enron in either Latin America, North America or 
Europe.  Joe indicated you were the right person to discuss this with. I have 
moved my family a few too many times in the past 24 months. I can not afford 
to keep bouncing them around so I will need to make sure this is the best 
decision at this time for Enron and myself. We were in Sao Paulo last year 
and the city is fine but the questions will be for how long?, accomplishing 
what with my career? and will the position maximize my value. 

Let me know if you have an extra minute.

MFG   

  




David W Delainey@ECT
12/08/2000 06:35 PM
To: Michael Guerriero/SA/Enron@ENRON
cc:  

Subject: Re: Organizational Changes  

Mike, I will try and call you on Monday - I spoke to Kish about Arcor - he is 
working on it.

Hang in there ....

Regards
Delainey