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Biotech / Medical : Catalytica Energy Systems, Inc. (CESI) -- Ignore unavailable to you. Want to Upgrade?

To: Michael George 111 who wrote (1511)	9/6/2000 1:51:56 AM
From: WTMHouston	Read Replies (1) \| Respond to of 1514

Mike: Neither I nor anyone else can tell you whether to hold or sell, but, FWIW, I would not buy CTAL right now. Just too many unknowns, IMO. Frankly, the one-third to one-quarter share in the new company per current share in CTAL + around $9 to $10 in cash, makes me wonder how it is holding at $13. It looks like Enron and MSCP will own a significant share of the new company. I doubt that Enron's current 15% stake in CCS is being reduced at all and, considering the options, may actually increase. Troy Saw this release today: MOUNTAIN VIEW, Calif. (CBS.MW) -- Catalytica Inc. is spinning off its Catalytica Combustion Systems unit to shareholders in a deal worth about $66 million, according to a filing with the Securities and Exchange Commission. Catalytica Combustion develops proprietary technologies that use catalysts to eliminate the formation of harmful pollutants and improve the performance of hydrocarbon combustion systems. Catalytica Inc. (CTAL: news, chart) said shareholders would get one-quarter to one-third of a share of the new company for each Catalytica share held. Energy Services giant Enron Corp. (ENE: news, chart) owns 15 percent of Catalytica Combustion. Concurrent with the spinoff, the company said series B Catalytica Combustion shares owned by Enron would be converted to common stock in the new company. The company also said the spinoff will result in an unspecified adjustment to the terms of current options Enron holds to boost its stake. In July, Enron's New Power Co. (NPW: news, chart) filed for a $400 million initial public offering as part of its bid to become the first nationally branded utility in the United States. Founded in 1997 by Enron, the company bills itself as a provider of electricity and natural gas to residential and small commercial customers in the United States.