Subject: bridgeline
louise :
please find the attached presentation that jean , don and i came by to discuss with you . i know you are up to your eyes in credit issues , so we can talk about this when you get a chance .
we wanted to review the impact of the merger on bridgeline . specifically , the potential benefits for putting in place an asset management structure for bhlp . dynegy has expressed interest in commercially managing these assets and enron would to , if we would not have to pay an excessive fee to do so . jean ' s initial analysis indicates that bridgeline is currently undervaluing the accrual value of the pipe and over - valuing trading . we may be able to use this fact to our advantage in establishing a " low " asset management fee to pay to bridgeline .
in addition , we may be able to reduce our deployed capital by selling the accrual value in bhlp to an mlp who is willing to pay a premium for stable cash / earnings . the mlp could be one of enron ' s ( e . g . northern boarder , eott ) , or a chev / tex mlp ( ? ) , or even a 3 rd party mlp . the deciding factor should be the value the mlp is willing to pay for the earnings stream .
we have continued to discuss this with the chev / tex board members who remain interested in evaluating the benefits of this structure . in their view , the dynegy / enron merger is a positive fact because it removes the dynegy vs . enron competition .
when you get a chance we can talk .
brian