Big week coming up.  Bank meeting on Monday in New York and 10-Q on Monday.   Can't wait to read it.  

-----Original Message-----
From: Dasovich, Jeff 
Sent: Saturday, November 17, 2001 9:26 AM
To: Tribolet, Michael
Subject: RE: PG&E settlement offer


I like it.  Quicker the better.  And the approach and the number are resonable. Good luck.

-----Original Message----- 
From: Tribolet, Michael 
Sent: Fri 11/16/2001 3:33 PM 
To: Dasovich, Jeff; Steffes, James D.; Mellencamp, Lisa; Curry, Wanda 
Cc: 
Subject: FW: PG&E settlement offer





Ken Lay called Rick Buy and I up to his office talk about settlement just now.   He would like to settle for liquidity/good news.   Rick Buy is going to discuss with Whalley.

 -----Original Message----- 
From:   Tribolet, Michael  
Sent:   Friday, November 16, 2001 3:30 PM 
To:     Buy, Rick 
Subject:        PG&E settlement offer 

        
Below are the proposed discounts we discussed with Ken Lay this afternoon: 

USD millions:       
                          Cash from 85       P+L with 85 cent 
             Discount   cent sale of claim    sale of claim 

Enron      $ 85.0 (17%)       $361.8             +$129.1      
PG&E       $237.0 (46%)       $232.6             -$  0.1 
Midpoint   $161.0 (32%)       $297.2             +$ 64.5 



If the midpoint (value between PG&E and Enron settlement offers) is acceptable from a liquidity and P+L standpoint, propose countering at a discount of $123 million (move half way to midpoint) to provoke a counter offer.   Intent is to settle at midpoint discount of $161 million.  The Excel file is attached.   




<<m011116.xls>>