Message-ID: <21255878.1075861369567.JavaMail.evans@thyme>
Date: Tue, 13 Nov 2001 11:55:12 -0800 (PST)
From: jeff.donahue@enron.com
To: greg.whalley@enron.com, jeffrey.mcmahon@enron.com, stanley.horton@enron.com
Subject: 
Cc: s..muller@enron.com
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Greg, Jeff and Stan:

I just received a call from David Dehaemers at Kinder, Morgan.  They are interested in buying Transwestern and offered to have Rich call Ken - but I waived that off in order to get a read from you all.

With respect to the merits, if a preferred at the pipe level is being treated as effectively debt by the rating agencies, a sale is roughly equivalent to a preferred with respect to both ratings and liquidity.  In addition, the sale should provide greater proceeds due to lower cost of funds and may have a higher probability of success.  One key issue will be funding the sale at signing or HSR rather than regulatory approval.

I first wanted to test you three, and if supportive, determine the best path upon which to proceed including gaining Dynegy's consent.

Jeff