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To: John Pitera who wrote (1089)	5/24/2000 10:41:00 AM
From: John Pitera	Respond to of 2850

ENE continues on bold Plan to Take over the World -g- buys London metals dealer. May 23, 2000 -------------------------------------------------------------------------------- Enron Will Pay $445 Million To Buy Metals Merchant MG A WALL STREET JOURNAL News Roundup LONDON -- Enron Corp. plans to buy MG PLC in a deal valuing the British company at about 300 million pounds ($445 million or 495 million euros). The 300 pence-per-share all-cash acquisition would give the U.S. energy and communications group an entry into the $120 billion (133.5 billion euros) global metals market. Enron's offer has been unanimously recommended by MG's board and is subject to shareholder and other regulatory approvals, the companies said in a jointly issued statement. The companies expect to close the transaction in the third quarter of the year. MG, a floor-trading member of the London Metals Exchange, is among Europe's biggest physical merchants of copper, nickel and aluminum, with operations in 14 countries. Enron gives MG broader shoulders to compete against far-larger banks and competitors owned by big corporations amid consolidation in the market and the need to finance large projects, analysts said. "It will allow us to grow the business a lot more aggressively, with a global trading powerhouse behind us, and frankly we intend to become the largest, most highly respected, most successful metals trading business in the world," said MG Chairman Tom McKeever. MG floated on the London Stock Exchange last September at 205 pence a share, valuing the company at 205 million pounds. Metallgesellschaft AG spun off 56% and held on to the rest. MG Technologies AG, the renamed Metallgesellschaft, and its directors have agreed to sell their 44% to Enron at the offer price of 300 pence a share. MG on Monday also reported a 29% drop in pretax profit for its fiscal first half ended March 31, to $21.1 million, or 14.5 cents a share.