b 2 b enron tom sending information new b 2 b unit talked yesterday greg whalley heading new unit e commerce project wharton recommended enron join program sent morning copy materials gave meeting jeff skilling pushed till 2 nd half july talked briefly twice jeff shankman want discuss building relationship wharton jeff shankman way great friend institution vince companies finance americas enron sees bricks bytes mix reshaping energy market purchase mg start building b 2 b platforms writes hillary durgin companies financial times 16 jun 2000 12 00 00 604 words hillary durgin jeffrey skilling right enron acquisition mg tip iceberg enron president chief operating officer engineering fundamental strategy shift houston energy company aimed making dominant new economy player across various industrial markets dollars 446 acquisition last month mg uk based metals trader first dollars lbn estimated new investments company targeting seeking vehicles build business business b 2 b platforms sectors logistics chemicals agricultural products pulp paper mr skilling wants take business model company developed natural gas power apply wholesale commodity markets argues electronic platforms creates become principal b 2 b sites sectors reshape industries example points enron new e commerce platform enrononline changed way company business customers significantly increasing sales company largest wholesale merchant natural gas power saw wholesale physical deliveries natural gas surge 53 per cent first quarter critics argue enron move away familiar energy business new industries learning curve steep competition entrenched risky yet number industry analysts point enron proved understands markets manage risks becoming largest importer coal uk largest trader gas power us grabbing advantage bandwidth prudent strategy got done orderly way says ronald barone analyst paine webber new york incredibly successful adds noting enron posted dollars 1 3 bn earnings interest taxes ebit wholesale energy services business 1999 34 per cent previous year earnings division accounted two thirds company overall income interest taxes last year mr barone sees unit ebit increasing 15 30 per cent annually several years gas power broadband enron standardising contracts creating market bandwidth wants create markets entering physical player providing merchant risk management financial services internet provide electronic commerce provide liquidity provide settlement fulfilment contract mr skilling says extremely powerful model look b 2 b sites mr skilling argues enron e commerce platform triumph bulletin board type exchanges striking deal depends two parties hooking working uncertainties timing price credit fulfilment everyone shares view energy companies example would rather business competitor bp amoco recently purchased 3 per cent stake altra energy technologies houston based neutral wholesale energy exchange koch industries american electric power also committed carry fixed volume transactions site lend liquidity gas power broadband metals enron believes needs networks strategic physical assets acquiring mg enron got stable warehouses lending strong physical position provide mg vibrant active physical spot market markets world says greg whalley chief executive officer enron net works new division enron launching identify enter commodity markets argues metals markets enron deliver better pricing price risk management services cross commodity transactions flexible transactions wider range customers mr skilling says significant rewards restructuring industry take platform use capabilities bricks bring table e commerce industry change structure selling 50 multiple copyright financial times limited