|
|
Enron Mail |
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: James Derrick X-To: Robert C Williams X-cc: X-bcc: X-Folder: \James_Derrick_Dec2000_June2001_1\Notes Folders\Discussion threads X-Origin: DERRICK-J X-FileName: jderric.nsf Tozzineiis fine by me. Robert C Williams@ENRON_DEVELOPMENT 12/06/2000 02:20 PM To: Rob Walls, James Derrick/Corp/Enron@ENRON cc: Subject: Potential Lawsuit Versus Copel, Petrobras, Compagas, and Compagas Board Members Privileged and Confidential Attorney-Client Communication; Attorney Work Product We may need to file a suit this week or next to enjoin the signing of a gas supply agreement between Petrobras and Compagas. As you know, Enron (Dutapar), Copel, and Petrobras are the three shareholders of Compagas. Copel has as interest (along with El Paso) in the power plant which would use the gas. A contract has already been signed between Compagas and the plant. The Compagas Board votes on the agreement tomorrow. The gas supply contract would have a 20-year term and would be worth $1.2 billion. The ground for the suit would be that, under Brazilian law, Compagas is required to solicit bids for the gas supply arrangement. Compagas has sought to justify not soliciting bids on the basis that Petrobras is the only supplier capable of supplying the gas. This is incorrect: Enron, among others, is also capable of supplying the gas. We have a legal opinion supporting our position. and have called for a special shareholders' meeting to discuss the issue. We anticipate that Petrobras and Copel, despite their obvious conflict of interest, will force the issue and will vote in favor of the agreement nonetheless. Tozzini Freire has been advising us, and is doing an excellent job. If you approve, we would like to continue to use them if litigation is necessary. Please call me or Randy with any comments or questions. Thank you.
|