E.on deal could set debt financing record 21 Feb 2006 Raising the cash shouldn t be hard. Capital is plentiful and banks are even more eager to lend for M&A than last time. The financing package for its allcash offer for Endesa could surpass the E30bn high water mark set in Europe s last takeover boom.
Enel will need to be bold to muscle in on Spanish scrum 21 Feb 2006 The Italians were hoping to pick up scraps if Gas Natural bought rival Endesa. But E.on s bid for Endesa makes that harder. Enel could team up with Gas Natural to bust up E.on s deal. Or it could train its sights on Iberdrola. But neither will be easy to pull off.
E.on will struggle to create value with Endesa offer 21 Feb 2006 The German utility has no obvious synergies with the Spanish group. And it is paying a punchy price. E.on has long traded at a discount due to fears it was storing up cash for a large acquisition. It has done so in spades.
E.on rides to Endesa’s rescue with punchy E55bn bid 21 Feb 2006 Gas Natural, which made a hostile bid for its larger Spanish rival, will find it hard to compete with a German cash bid that is 30% higher. Although it probably won't give up without a fight, it may need new allies to stay in the game. The Spanish government won't like this German invasion. But it will be hard to block it.
Gazprom’s mooted Centrica bid is all hot air 3 Feb 2006 The Russian gas giant s comment that it might bid for British energy supplier Centrica has been completely misinterpreted. It is also out of character with Gazprom s other foreign deals, which involve minority stakes with local owners providing political cover.
Gas Natural’s bid looks increasingly stingy 18 Jan 2006 After Endesa s stellar results, it s getting harder for Gas Natural to argue against raising its bid. The Barcelonabased bidder should make a more generous offer.
Wilbur Ross in the black with coal IPO 11 Oct 2005 Just as he did by rolling up the bankrupt US steel industry, Ross should reap big gains from his coal IPO. But this has less to do with crafty restructuring than it does with the frothy market for coal stocks.
Endesa raises the bar for Gas Natural 3 Oct 2005 The Spanish electricity company is promising over E7bn of dividends in a bid to fight off Gas Natural s hostile bid. This is a longoverdue recognition of shareholders interests and has rightly pushed the shares further above Gas Natural s offer.
Gardner to step down at Centrica 15 Sep 2005 The only strike against the chief executive s near decade long tenure has been the UK utility s reluctance to replenish its gas fields. But he is not retiring until next summer. The UK could well have a gas glut by then. After all, Gardner has been lucky before.
Endesa bid is a win-win for Iberdrola 14 Sep 2005 Sure, the Spanish utility s move on its main competitor Endesa looks shabby. But Iberdrola is being opportunistic. It has much to gain, and relatively little to lose, from the side deal it has cut with Gas Natural.
Centrica bid talk reflects wishful thinking 12 Sep 2005 The UK power company is in a strategic bind, caught between rising fuel prices and falling gas reserves. No wonder some shareholders are pinning their hopes on a bid. But the list of potential bidders may be shorter than people think.
Energy bid battle shows Spain’s protectionist streak 9 Sep 2005 No foreign white knight will ride to embattled Endesa s rescue for the simple reason that everyone knows Madrid wouldn t allow it. This protectionism is bad for the utility s shareholders, bad for Spain s energy market, and bad for consumers too.
How should Endesa defend itself? 6 Sep 2005 The Spanish utility may be starting from a weak position. But that doesn t mean Gas Natural's hostile bid is a knockout. Far from it. There are lots of holes that Endesa could pick in the approach.
Gas Natural in hostile bid for Endesa 5 Sep 2005 Spanish utilities have been trying to merge for years, with no luck. Politics usually got in the way. Gas Natural has tried and failed deals before. Another failure would be seriously damaging for its credibility.
GDF kicks off E4bn IPO 23 Jun 2005 The float of the French gas company will be the largest worldwide in three years. The discount to the sector means things should go smoothly despite the group s massive investment plans.
Centrica needs a gas deal 11 Apr 2005 The UK energy group's gas output is falling. That gives it less ability to cushion customers from spikes in wholesale gas prices. Acquiring more production capacity, for example by merging with Norsk Hydro, would make sense. The snag is that it's a seller's market.
Centrica fighting to retain retail customers 24 Feb 2005 The UK energy group has been haemorrhaging retail customers. Now it wants to retain them. This will cost the company. It remains to be seen whether cost cuts in other parts of the business can compensate.
D&B is the new game in UK finance 4 Jul 2004 That stands for disposals and buybacks. Best practice is now to recycle all the proceeds from a disposal. Low interest rates and investor scepticism about M&A are driving the trend. Those doing it, like Centrica, are rewarded.
The UK gas firm has made out like a bandit. Its Automobile Association unit is probably only worth £1.3bn to Centrica. 1 Jul 2004 Investors should be pleased. Not only has Centrica ended a diversification strategy that hasn't worked; the result is a chunky £1.5bn payout
Centrica seeks £1.5bn for AA breakdown unit 21 Jun 2004 The utility used to believe it could sell its gas customers loosely related products and services and diversified accordingly. Now this strategy is in full retreat.