Energy

Hedge funds stuck on fence over E.ON/Ruhrgas merger

29 Jan 2003

If the deal goes through, another one is triggered: coal group RAG will buy a huge chunk of Degussa stock at a 60% premium. Legal wranglings ensure a tight finish. Degussa s current share price implies the odds of completion are 40%.

BP asset sale may start oil sector trend

14 Jan 2003

Rising exploration costs mean that oil firms can no longer chase profitability and production growth at the same time. So if profitability is back in vogue, then production can give. Oil majors are long overdue a restructuring of their tail end assets.

Opec to pour oil on troubled Venezuela waters

7 Jan 2003

The cartel says it is ready to open the taps to stop oil prices rising further due to Venezuela s general strike. Fortunately, it has enough spare capacity to meet 2m bpd of foregone Venezuelan exports. But it has little left for other emergencies.

Rising commodity prices suggest reflation

3 Jan 2003

But only at first glance. The increases are not matched by more optimistic business surveys, or even higher demand. Instead, supply squeezes are mainly responsible. Funds have done the rest of the work, betting on reflation measures yet to come.

Colaninno’s designs for Fiat gain currency

31 Dec 2002

The wily entrepreneur has laid low since selling Telecom Italia, but he s got big plans. He wants to drive Fiat to recovery. And with the Prime Minister s implicit blessing, his plans have jumped into the realm of possibility.

Fiat’s banks come out swinging

12 Dec 2002

By suspending talks to buy Fiat's finance business, they have pushed the company to the brink of a credit downgrade. That may be the idea. If downgraded, the banks can convert debt to equity, take control and fight the MediobancaAgnelli axis.

Fiat’s banks come out swinging

12 Dec 2002

Edison E2.1bn fund raising gets harder still

11 Dec 2002

The Italian group is looking to raise part of that money from the market. But its shares have fallen so much that a deep discount is no longer possible.

Edison E2.1bn fund raising gets harder still

11 Dec 2002

Oil see-saws as demand cools, politics heat up

10 Dec 2002

OPEC is caught in a tough balancing act. The market is oversupplied but only if the situations in Venezuela and Iraq don t blowup. Investors in oil companies are pessimistic. Brent oil is at $25, yet oil stocks are discounting a $16 per barrel price.

Oil see-saws as demand cools, politics heat up

10 Dec 2002

EdF draws short straw in Edison recapitalisation

2 Dec 2002

The French electricity giant is, in one way or another, on the hook for a full E1.2bn. But Fiat and its banks don't get off scotfree.

EdF draws short straw in Edison recapitalisation

2 Dec 2002

Eni bids E2.5bn to take control of Italgas

26 Nov 2002

But Eni may not have changed its mind. Buyingin Italgas may be a prelude to selling off the bits of the firm it doesn t want. Huh? Until now, the Italian energy company s gas strategy had been to exit regulated businesses, such as Italgas.

Eni bids E2.5bn to take control of Italgas

26 Nov 2002

Fiat’s banks step up the pressure

25 Nov 2002

News that the carmaker may have to flog family jewels, such as insurance unit Toro, suggest things are getting worse. Indeed, Fiat may have to pour millions of euros more into the auto unit if it is going to have a business left to put to GM.

Fiat’s banks step up the pressure

25 Nov 2002

Eni pays $1.1bn for Fortum assets

20 Nov 2002

Strategically, the deal makes sense for Eni as Fortum's assets give Eni critical mass in the North Sea. But even after stripping out the net present value of tax loss carryforwards, Eni is paying a very rich price.

Eni pays $1.1bn for Fortum assets

20 Nov 2002

Edison in E2.1bn capital increase

18 Nov 2002

Finding fresh money will be a struggle. The market may not be keen to contribute. This leaves Fiat, EdF and the banks playing a game of pass the liability. Who will blink first?