FW: Two cow theory

-----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.
<