-----Original Message-----
From: Wang, Steve 
Sent: Friday, November 02, 2001 10:00 AM
To: Stalford, Robert; Arora, Harry; Gualy, Jaime; Mack, Iris
Subject: FW: Two cow theory




-----Original Message-----
From: Hodnette, Brooks [mailto:BHodnette@coral-energy.com]
Sent: Friday, November 02, 2001 9:58 AM
To: Wang, Steve; Adam Hoffman (E-mail); Dean Sloan (E-mail)
Subject: Two cow theory



> Enron Venture Capitalism
> You have two cows.
> You sell three of them to your publicly listed company, using letters of
> credit opened by your brother-in-law at the bank, then execute a debt/
> equity swap with an associated general offer so that you get all four cows
> back, with a tax exemption for five cows.  The milk rights of the six cows
> are transferred via an intermediary to a Cayman Island company secretly
> owned by the majority shareholder who sells the rights to all seven cows
> back to your listed company.  The annual report says the company owns
> eight cows, with an option on one more.
>