Oil & Gas

Europe pulls back from protectionist brink

6 Apr 2006

Shabby compromises in Poland and France don t inspire much confidence. But at least crossborder deals are going ahead in some form. Meanwhile, the EU is fighting to enforce single market rules. If there isn't a decisive popular backlash, Europe should muddle through.

Endesa shouldn’t take Gas Natural to court

22 Mar 2006

There's no point. Gas Natural's bid has been trumped by E.on's far higher bid. Indeed, the lawsuit may actually put that bid in jeopardy. The Endesa board may conclude it s not worth the risk.

Mood music may point to Enel compromise

21 Mar 2006

There is so much love pouring out of France in the direction of the Italian utility that you can almost touch it. That s not surprising. A deal would be in everybody s interest except perhaps the Suez shareholders.

Linde restructuring, not BOC, adds value

8 Mar 2006

The German conglomerate's shares have risen on the BOC takeover, even though it may be valuedestructive. Why? Because Linde is gearing up and breaking itself up which adds value. Linde has scrunched the lot together to sell investors the deal.

Gas Natural may have to pull out stops to match E.on

7 Mar 2006

The Spanish utility could just about match E.on s bid for Endesa without destroying value for its own shareholders. But to get there, it would have to rely on more gearing and share some of the pain with its partner Iberdrola.

Gas Natural won’t raise Endesa bid tomorrow – exclusive

28 Feb 2006

Endesa investors expecting it to overtake E.on s bid immediately, as press reports suggest, are likely to be disappointed. Eventually Gas Natural will have to raise its bid. But tactically, it makes more sense to see if E.on can jump through the regulatory hoops.

Was Enel an innocent abroad?

27 Feb 2006

The notion in Italy that Enel is the victim of a French stitchup to keep it out of Suez is understandable. But Enel also misjudged the politics, and its own strength. Given that it didn't put a bid on the table, it can't protest too much.

Gas Natural may have to go for plan B

22 Feb 2006

If its Endesa bid falls through, the Catalan utility may turn its attention to Iberdrola, the electricity group it tried to buy in 2003. A deal still looks complicated. But a threat of a foreign takeover could force the pair into a deal.

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 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.

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.

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.

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.