Cenibra/JBP Market Rumor ,
 Our internal intelligence group informed us that the following rumor is cir=
culating in the Brazilian market:  JBP is considering putting the Cenibra a=
ssets (note that these are the assets they recently purchased from CVRD) up=
 for sale.  They indicated that JBP was interested in improving the assets =
(they are currently implementing a debottlenecking project at Cenibra) and =
then selling them for cash flow reasons.  The strongest possible buyer at t=
his point would be VCP as they're currently in a very strong financial posi=
tion (low leverage and are part of the Votorantim conglomerate which throws=
 off considerable cash from its cement and financial services businessnes).=
  Also look for the Scandinavians to possibly make a bid for the assets as =
they've expressed interest in obtaining eucalyptus assets in the past.  We =
can most likely discount Aracruz from the running as they're currently rumo=
red to be an acquisition target themselves (most likely buyer would again b=
e VCP as they recently purchased Mondi's stake in the company and presently=
 holds a 28% share in Aracruz --- however, it's doubtful that VCP would be =
able to swallow Cenibra and Aracruz simultaneously).  What does this mean f=
or the market?  Any purchase by VCP would make them the strongest eucalyptu=
s pulp producer globally with over 2 million tons (estimated market pulp wo=
uld be about 1.7 million tons) and give them considerable pricing power as =
they would represent roughly 30% of global market capacity for eucalyptus p=
ulp.

Please note that this is a rumor at this point and should be viewed as such=
.  I'll keep you updated regarding any developments.

KC
r..conner@enron.com, dirk.dimitry@enron.com, daniel.ferrell@enron.com, 