re : mpr for 6 / 20 / 00 ted ,
question 1 ) the investments in calme and apachi are booked on an accrual
basis . i have had several meetings with commercial and accounting
representatives over the last year and all have stated that any earnings are
effectively reinvested back into the assets . therefore , the market values
that are reflected on the mpr are actually book values . the book values are
typically adjusted the last week of the month and are 1 month behind as the
internation groups wait until the gl is closed before communicating the
updated values .
question 2 ) thanks for the heads - up on india . i spoke with sheila glover
and we are now aware of the details behind rediff . com . we need to ensure
that these positions are not accounted for on the dpr by india so that we do
not double - report the p & l . the long - term solution is to establish a
communication line for future investments . between sheila , donna lowry , and
i we can develop a plan .
question 3 ) the 3 bonds that you are referencing were purchased by jeff
kinneman for jim easter . during our last conversation , jim told jeff that
these are strategic investments and should not be reflected on the mpr .
there is still some uncertainty / confusion as to when an investment is
classified as merchant . we could insist that all publically traded
investments not included in the equity books would qualify . having said
that , i would like to know if the gas authority of india , ltd ( gail ) and
europe ' s investment in mg are considered to be merchant investments .
i will be on vacation this friday and all of next week so please include
david maxwell on any responses . david and i will stay in touch so as to make
adjustments as needed .
thanks ,
todd
from : ted murphy
06 / 22 / 2000 03 : 07 pm
to : d todd hall / hou / ect @ ect
cc : sally beck / hou / ect @ ect , rick buy
subject : re : mpr for 6 / 20 / 00
mr . hall ,
i have just reviewed the merchant portfolio summary for 6 / 20 and have the
following questions :
1 ) calme shows an asset of $ 291 . 9 mm and apachi shows an asset of $ 113 . 0 mm
and they show no p & l for the year
is this possible in a world of changing interest rates and equity premiums
and commodity prices ?
2 ) india recently invested in an ipo ( rediff . com ) for which there was a
simultaneous dash to buy and sell ( sounds like a merchant deal ) .
where does this show up ?
3 ) there are several bonds ( publicly traded , registrered securities , housed
in our prime broker accounts ) owned by various enron entities
that i do not believe are on the dpr . shouldn ' t they be ? and if so , who is
deciding not to include ?
pls advise at your earliest convenience as you always do .
thanks
ted
from : d todd hall 06 / 21 / 2000 01 : 16 pm
to : rick buy / hou / ect @ ect , andrea v reed / hou / ect @ ect , sally beck / hou / ect @ ect ,
ted murphy / hou / ect @ ect , richard causey / corp / enron @ enron , carol jean
marshall / hou / ect @ ect , raymond bowen / hou / ect @ ect , jeff
skilling / corp / enron @ enron , jeff donahue / hou / ect @ ect , l ' sheryl
hudson / hou / ect @ ect , monica reasoner / hou / ect @ ect , hope vargas / hou / ect @ ect ,
adarsh vakharia / hou / ect @ ect , joseph w sutton @ enron , michael s
galvan / hou / ect @ ect , maria lebeau / hou / ect @ ect , wes colwell / hou / ect @ ect , mark
frevert / na / enron @ enron , thomas myers / hou / ect @ ect
cc :
subject : mpr for 6 / 20 / 00
re : mpr for 6 / 20 / 00
ted ,
question 1 ) the investments in calme and apachi are booked on an accrual
basis . i have had several meetings with commercial and accounting
representatives over the last year and all have stated that any earnings are
effectively reinvested back into the assets . therefore , the market values
that are reflected on the mpr are actually book values . the book values are
typically adjusted the last week of the month and are 1 month behind as the
internation groups wait until the gl is closed before communicating the
updated values .
question 2 ) thanks for the heads - up on india . i spoke with sheila glover
and we are now aware of the details behind rediff . com . we need to ensure
that these positions are not accounted for on the dpr by india so that we do
not double - report the p & l . the long - term solution is to establish a
communication line for future investments . between sheila , donna lowry , and
i we can develop a plan .
question 3 ) the 3 bonds that you are referencing were purchased by jeff
kinneman for jim easter . during our last conversation , jim told jeff that
these are strategic investments and should not be reflected on the mpr .
there is still some uncertainty / confusion as to when an investment is
classified as merchant . we could insist that all publically traded
investments not included in the equity books would qualify . having said
that , i would like to know if the gas authority of india , ltd ( gail ) and
europe ' s investment in mg are considered to be merchant investments .
i will be on vacation this friday and all of next week so please include
david maxwell on any responses . david and i will stay in touch so as to make
adjustments as needed .
thanks ,
todd
from : ted murphy
06 / 22 / 2000 03 : 07 pm
to : d todd hall / hou / ect @ ect
cc : sally beck / hou / ect @ ect , rick buy
subject : re : mpr for 6 / 20 / 00
mr . hall ,
i have just reviewed the merchant portfolio summary for 6 / 20 and have the
following questions :
1 ) calme shows an asset of $ 291 . 9 mm and apachi shows an asset of $ 113 . 0 mm
and they show no p & l for the year
is this possible in a world of changing interest rates and equity premiums
and commodity prices ?
2 ) india recently invested in an ipo ( rediff . com ) for which there was a
simultaneous dash to buy and sell ( sounds like a merchant deal ) .
where does this show up ?
3 ) there are several bonds ( publicly traded , registrered securities , housed
in our prime broker accounts ) owned by various enron entities
that i do not believe are on the dpr . shouldn ' t they be ? and if so , who is
deciding not to include ?
pls advise at your earliest convenience as you always do .
thanks
ted
from : d todd hall 06 / 21 / 2000 01 : 16 pm
to : rick buy / hou / ect @ ect , andrea v reed / hou / ect @ ect , sally beck / hou / ect @ ect ,
ted murphy / hou / ect @ ect , richard causey / corp / enron @ enron , carol jean
marshall / hou / ect @ ect , raymond bowen / hou / ect @ ect , jeff
skilling / corp / enron @ enron , jeff donahue / hou / ect @ ect , l ' sheryl
hudson / hou / ect @ ect , monica reasoner / hou / ect @ ect , hope vargas / hou / ect @ ect ,
adarsh vakharia / hou / ect @ ect , joseph w sutton @ enron , michael s
galvan / hou / ect @ ect , maria lebeau / hou / ect @ ect , wes colwell / hou / ect @ ect , mark
frevert / na / enron @ enron , thomas myers / hou / ect @ ect
cc :
subject : mpr for 6 / 20 / 00