fw : sundance b bid from duke we feel that selling at the levels below would be stupid . we ' ll keep searching for a better bid .
- - - - - original message - - - - -
from : davies , derek
sent : thursday , september 20 , 2001 4 : 27 pm
to : lavorato , john ; kitchen , louise ; milnthorp , rob
cc : miller , don ( asset mktg ) ; zufferli , john
subject : sundance b bid from duke
john / louise / rob :
i thought i would fire off a quick note to inform you that duke produced a non - binding bid for the entire sundance b ppa . duke ' s bid is c $ 180 , 000 , 000 . this compares to an earlier bid of c $ 120 , 000 , 000 to c $ 140 , 000 , 000 for one unit on july 10 , 2001 . duke ' s bid combined with the cost structure of the ppa would have duke buying the ppa for approximately c $ 35 . 50 / mw or us $ 22 . 50 / mw .
the mark - to - market value of both the sundance units as of september 18 th ' s curves was c $ 178 , 120 , 374 . therefore , a sale to duke at c $ 180 mm would not provide any significant increase to earnings . additionally , it must be noted that the curves have some very conservative heat rate assumptions built into to the latter years .
based on a conversation with john last week , he clearly indicated that selling the ppa for under us $ 25 . 00 / mw is not acceptable . i would agree with john that enron would better be served by maintaining its current position than accept a bid reflecting a price less than us $ 25 . 00 . it must be noted that duke ' s bid expires at 5 : 00 pm cdt , september 21 . therefore , if anyone feels strongly that we should move forward with duke we should address it immediately . otherwise , don miller and i continue to position enron for the division of the ppa and subsequent auction .
derek
fw : sundance b bid from duke
we feel that selling at the levels below would be stupid . we ' ll keep searching for a better bid .
- - - - - original message - - - - -
from : davies , derek
sent : thursday , september 20 , 2001 4 : 27 pm
to : lavorato , john ; kitchen , louise ; milnthorp , rob
cc : miller , don ( asset mktg ) ; zufferli , john
subject : sundance b bid from duke
john / louise / rob :
i thought i would fire off a quick note to inform you that duke produced a non - binding bid for the entire sundance b ppa . duke ' s bid is c $ 180 , 000 , 000 . this compares to an earlier bid of c $ 120 , 000 , 000 to c $ 140 , 000 , 000 for one unit on july 10 , 2001 . duke ' s bid combined with the cost structure of the ppa would have duke buying the ppa for approximately c $ 35 . 50 / mw or us $ 22 . 50 / mw .
the mark - to - market value of both the sundance units as of september 18 th ' s curves was c $ 178 , 120 , 374 . therefore , a sale to duke at c $ 180 mm would not provide any significant increase to earnings . additionally , it must be noted that the curves have some very conservative heat rate assumptions built into to the latter years .
based on a conversation with john last week , he clearly indicated that selling the ppa for under us $ 25 . 00 / mw is not acceptable . i would agree with john that enron would better be served by maintaining its current position than accept a bid reflecting a price less than us $ 25 . 00 . it must be noted that duke ' s bid expires at 5 : 00 pm cdt , september 21 . therefore , if anyone feels strongly that we should move forward with duke we should address it immediately . otherwise , don miller and i continue to position enron for the division of the ppa and subsequent auction .
derek