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Enron Mail |
Jeff,
FYI. This is an excellent email and one that addresses all the issues we need to make decisions on. Lets discuss because I have some views but am very open to others especially when I don't really know (first hand) what oppts really look like there. We need to address quickly. Mike ---------------------- Forwarded by Mike McConnell/HOU/ECT on 05/03/2001 10:53 AM --------------------------- Morten E Pettersen@ENRON 05/03/2001 03:15 AM Sent by: Morten E Pettersen@ENRON To: Mike McConnell/HOU/ECT@ECT cc: Subject: Tokyo opportunities Hello Mike, I tried to call you several times yesterday but you were busy all the time. The reason why I called is that I have some questions that I will like your input on before I take a decision. I will try to call you later today but here are some of the questions. You and Jeff talks about a senior position for me. What do you mean by that and what will Joe's position be. Will he still be the "president" or will he take a more active role on the origination side. What will Jeremy's role be. Today he does all these senior structuring deals with EGM products. Focus. There are very many commodities to look at here but since we have limited resources at this stage we need some focus in the beginning. If we look at everything at once - nothing will happen. There are two areas that looks "easy" to start with. Softs and Liquids. How willing are EGM to focus on these in the beginning. The reason for I call these areas "easy" is that there are big and very liquid liquids and soft markets here and it therefore will possible to do transactions early to get some momentum in the business. The other markets have large potential but will take much longer time to develop. I look at Equity/FX/Interest as something Darren will continue focus on. When some of these markets start to develop and we will have some marketing activities/trading going on where will the books probably be and to whom will we report. If we do Softs will it be to Gary or will it be to Jeff. How will it be integrated. I have no problem with say reporting liquids etc to John Nowlan, Softs to Gary, weather to Mark. I think this will be a good solution because it will force them to follow us up and it will be easier to communicate strategies back and forth etc. The situation today on weather is something that I do not like. We have the book, but we do not have any real support from Houston or real responsibility. If that is the situation we will soon have a lot of problems. It is not a secret within Enron that the Singapore oil situation, coal in Asia/Australia and the weather in Scandinavia/Europe are not optimal. For me to take a decision I will need to know that there are support and willingness from all the heads of EGMs different commodities for developing the possibilities in this region, not only from you and Jeff. I do not want to use all my time fighting internal battles, but I know that it will be hard work to make a business grow. Staff. In my power trading group today I have 2 managers and 9 AAs. The managers + 2 Asso are what I call marketing guys and the rest are analysts (some with trading potential). We have no one with trading background in EGM products so that need to be recruited. At the same time many of these AAs have started within the last 6 months so they are not fully Enronized so it would be a good idea to send over some AAs or managers to teach people models etc. You mentioned Singapore in the TC, what will happen with them? How does EGM reward people for starting up businesses. It was almost impossible to get someone to help me building up the power here (both London and Houston). People, especially not traders, do not want to leave a profitable book or origination activities. Quite many got the feedback in last PRC that they need a number to their name, both P&L and number of originated deals, so they did not dare to leave. How will that be handled here? I think my main strength is trading, and I prefer to do trading, but I have quite good origination skills. Iknow that in a start up process you need to do both and I am more than willing to do that. This was a lot of questions but to get some feedback on them are necessary for me to take a decision. I will probably go to London on Wednesday and Thursday next week to speak with Sherriff etc. I will try to call you later today Regards Morten Erik
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