Please call to set up a meeting.  We should include Michael Anerson in the call.  There are updates that I need to provide you with.

 -----Original Message-----
From: 	Lisa Hobbs <lisa.hobbs@wessexwater.co.uk>@ENRON   On Behalf Of Colin Skellett <colin.skellett@wessexwater.co.uk>
Sent:	Monday, December 10, 2001 2:31 AM
To:	John L Garrison (E-mail); Michael Anderson (E-mail); Detmering, Tim; Muller, Mark S.
Cc:	Horton, Stanley; McMahon, Jeffrey; Keith Harris
Subject:	Wessex Sale

As you know, I have been expressing concern about the need for momentum with
the sale.  I understand we still don't have a bank in place and I know that
at least two of the bidders are beginning to feel that they are being used
simply to encourage others.

We have on the table three serious bids at or around RAB value - which is
better than we might have expected.  I understand RBS are now considering
talking to Barclays to bring them into a single bid which would not be good
for the competitive process.

We need to move quickly for a number of reasons:-

1	Keeping these guys interested.
2	There is an opportunity now to take out the high yield bond.
3	We need to get the deal done well before AEL refinancing is
required.

It seems to me we have three ways forward:-

1	Find an independent bank - there are UK banks such as Close Brothers
who are smaller but do not have any Enron issues.  They would be more than
capable of carrying out the sale process and we could leave the high yield
bonds with SSSB or CSFB.

2	Proceed without a bank - this carries the risk that we won't have a
fairness opinion.

3	Satisfy ourselves that one or maybe a combination of banks can carry
out the process without claims of undue influence.

I propose to arrange the first management presentations on Friday of this
week and Monday and Tuesday of next week because I believe it is essential
that we maintain momentum.  Let's sort out the bank issues before then.

Colin


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