update acquisition integration mg plc aware enron acquiring london based mg plc one world leading metals marketers connection going activities relating mg plc thought would helpful provide brief overview future new metals business explain reasons underlying acquisition update integration team accomplishments date mg plc mg plc leading independent international metals trading business provides variety services global metals industry business dates back 1881 german metallgesellschaft group active trading metals head office frankfurt today mg one world top non ferrous metals brokers market makers world leading independent copper merchant leading merchant many non ferrous metals mg comprised two core areas expertise financial services merchanting divisions financial services division formed 1970 provide market making trading services mg physical metals trading business futures trading member london metal exchange later date member comex new york late 1980 result london growing leading role metals industry mg established merchant trading office london 1986 mg developed warehousing division acquisition henry bath 1999 merchanting financial services divisions including warehousing combined single company floated london stock exchange currently mg core trading offices located london new york warehouse operations liverpool humberside rotterdam new orleans new singapore merchanting offices lima santiago los angeles chicago stockholm cologne hamburg frankfurt new delhi shanghai beijing hong kong seoul tokyo melbourne merchanting division merchanting division world leading independent copper merchant one top three independent merchants copper concentrates nickel one leading european merchants recycled non ferrous metals division also trades non ferrous metals london metals exchange lme including lead tin zinc aluminium brass merchanting division engages following main activities merchanting non ferrous metals mg trades principal producers consumers buying selling non ferrous metals concentrates particularly copper aluminium nickel exchanging qualities locations lending borrowing metals global stockholding mg holds stocks non ferrous metals warehouses around world merchanting recycled metal mg trades principal suppliers consumers non ferrous metal recycling terminal market operations mg participates lme comex using hedging arbitrage position management support merchanting activity financial services division financial services division one leading lme members based volume lme metals stored one leading lme metals warehousing businesses financial services division engages following main activities brokerage activities mg executes orders broker clients lme comex contracts market making mg market maker futures options contracts comex otc contracts warehousing mg stores metals goods eleven locations europe united states asia mg also begun prepare trade non ferrous metals using internet platform 10 th february mg announced formation joint venture internet capital group inc safeguard international fund l p develop internet marketplace trading non ferrous metals joint venture called emetra intends establish world wide business business e commerce trading platform non ferrous metals markets including physical trading trading futures options contracts enron acquiring mg enron committed expanding position global leader wholesale markets expanding new wholesale markets non ferrous metals enron expects leverage wholesale expertise able offer customers new products solutions address business needs link different commodities inputs mg provide enron number important benefits time enron expects mg significantly benefit association enron benefits envisage include opportunity combine enron core competencies trading finance origination mg global position trading non ferrous metals ability enron mg access new clients particularly united states europe ability cross market existing products new products bundled products offer combined metals power outsourcing ability leverage opportunities available mg increasing financial strength resources available chance overlay enrononline business model metals industry increase liquidity contract market share remains done merging business operations two entities even highly motivated companies enron mg continue formidable daunting exercise shared vision facilitates rapid integration many complicated complex tasks remain conditional offer period enron mg taking steps prepare seamless non disruptive integration respective operations ideally enron offer buy mg shares becomes unconditional 15 july 2000 current target date two hit ground feet running short term number things must accomplished facilitate smooth transition importantly order ensure deal goes forward enron mg work remove remaining conditions enron offer including obtaining shareholder approvals shareholders well obtaining relevant regulatory consents number steps must taken however first phase integration timetable ensure everything stays track integration activities focus four primary aspects operations commercial matters financial matters middle back office issues importantly employees organisations important goals relating areas commercial developing physical metal contracts suitable listing enrononline installing necessary communication technology links facilitate data transfers information flows mg enron preparing joint venture management plan mg interest emetra consistent enron goal listing physical metal contracts enrononline identifying opportunities combine enron core competencies trading finance origination mg global position trading non ferrous metals leverage mg position increasing financial strength resources available cross market existing new products enron mg customers particularly us europe grow mg metal trading franchise financial obtaining waivers mg banks respect change control loan agreements preparing plans integrate cash management functions putting place funding arrangements august 2000 onwards preparing plans arrange large scale inventory securitisation reduce balance sheet debt year end middle back office preparing financial information necessary understand maximise integration benefits including pro forma consolidated financial statements profit loss budgets third fourth quarters 2000 integration budgets determining feasibility integrating accounting systems 400 sap assessing mg core trading risk profiles developing plans incorporate risk profiles mg metals books enron systems evaluating systems infra structure mg office warehouse locations preparing budgets programmes provide mg staff access enron systems applications people preparing programme co locate mg london staff 145 enron house weekend 16 17 september developing plans harmonize compensation benefits employment policies practices developing plans staff reporting relationships communicating plans status activities levels enron mg organizations arranging introductions enron mg staff providing opportunities information exchanges go believe enron acquisition mg exciting opportunity us number steps remain taken already successfully begun integration enron mg remaining enthusiastic committed process expect transition proceed smoothly minimum difficulty summary mg offices staff worldwide location employee headcount location employee headcount brazil canada chicago chile edinburgh frankfurt germany hamburg hong kong houston k ln lima liverpool london los angeles ca missouri 1 4 6 1 1 28 1 39 1 2 1 1 38 152 18 3 moscow ny peru rotterdam shanghai singapore south africa spain stockholm tokyo henry bath camberley henry bath edinburgh henry bath london henry bath manchester henry bath avonmouth liverpool hb son 1 46 1 29 1 7 1 1 2 8 2 1 10 2 4 18 information queries regarding mg please contact eric gadd direct 44 20 7783 6595 fax 44 20 7783 8314