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May 23, 2001
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Money > Business Headlines > Report May 23, 2001 |
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Enron goes for India business valuationP Vaidyanathan Iyer & Parul Gupta In a move, which may be a prelude to Enron's complete exit from India, the company has appointed Arthur Andersen and Jones Lang La Salle to undertake a valuation exercise of all its business in the country, including the controversial Dabhol Power Company. While Jones Lang La Salle will assess all the real estate investments of Enron in India, Arthur Andersen will value the business worth of the Houston-based energy major's Indian set-up. When contacted, a company spokesperson declined to comment. "Nobody in Enron will talk about it," he said. However, sources said the appointment of consultants was in line with Enron's strategic decision of pulling out of the 2,144 mw power venture which has been mired in controversy from day one. According to sources, Enron's real estate investments have taken a big hit. "Enron invested in prime real estate during 1992-1995 when the prices were at a peak. However, they have touched more realistic levels now," said a real estate consultant. Jones Lang La Salle is, however, tight-lipped about such a mandate from Enron. Meanwhile, sources said that Cushman & Wakefield, which had earlier finalised certain real estate investments for Enron was also in the race. CB Richard Ellis has also proposed certain clients to Enron for buying/leasing some of its property. Enron's Houston-based president Jeffrey Skilling had in February said in an interview to Business Week that Enron "should not be in there (India) building $2 billion power plants. Our cost of capital is too high for that." DPC had disregarded the contents of the Godbole Committee report when it issued a preliminary termination notice to MSEB on May 19. The PTN gives DPC, MSEB, the state government and the Centre six months to resolve the issue amicably. If the talks fail, DPC would issue the final termination notice. Enron India had earlier this year also decided to abandon the proposed joint venture with MSEB and Global Telesystems for a broadband network in Maharashtra. Powered by YOU MAY ALSO WANT TO SEE:
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