|
|
Enron Mail |
Mike/Jeff,
=20 We have updated the business summary form that you asked me for yesterday. = In addition to your requests we have included estimates for business liqui= dation costs. As you will see there is very little difference ($1.8 MM) be= tween our assumed scaled down (Top Team) costs for 2002 and the costs to li= quidate the business ($ 7.8 MM). Given that we are seeing deal flow and tr= ansactions after less than 1/2 year with EGM in a brand new market, we woul= d expect to break even for 2002. If this is then compared to the liquidati= on costs, I believe an obvious question to shutdown would be why ($1.8MM di= fference assuming no earnings for 2002... and we will make earnings)? My e= xperience at Enron with startup businesses usually entails investment the f= irst year, break even the second and break out the third. I believe we are= on track to do this. The head start from other competitors, the state of = the Japanese market and the demand for risk mgt products further underscore= s the value in the proposition. =20 It has been sometime since either you or Jeff have been over to Japan and a= llowed us to give you a full business review. A lot has changed over this = period. We had hoped to do this with Jeff, but events of the last week hav= e clearly overshadowed and precluded this. While I understand everyone is = trying to gain clarity as soon as possible, I believe that it is imperative= that Japan be given a chance to present its case over the next 1-2 weeks. = I am fully prepared to visit Houston and demonstrate the clear case for th= is business as a prime marketing/origination vehicle for Japan and Asia wit= h clear options to develop a local trading presence. =20 =20 I look forward to speaking with you further about this. =20 Joe =20 =20 =20 =20
|