Oil & Gas

Is Italian real estate key to Tamoil deal?

6 Jun 2007

US private equity shop Colony Capital paid Libya E1bn more than the market expected for a big chunk of its oil marketer, Tamoil. Colony is buying into refining at the top of the market. But the deal could make sense if it can sell Tamoil s Italian service stations.

Is Gazprom getting too big?

30 May 2007

The Russian gas monopoly is taking on evermore ambitious projects, raising questions about its ability to handle the risk. But even if these projects take longer to develop, Russia may not care much. After all, it is playing a longterm game.

Suez ‘s move on Gas Natural could be its plan B

15 May 2007

The French utility's merger with GdF is in jeopardy, while the Spanish gas group's own takeover of Endesa failed. Increasing its stake in Gas Natural to 11% is a small step. But given Suez's close relations with La Caixa, further steps seem likely.

Newest private equity threat: antitrust scrutiny

30 Jan 2007

The Federal Trade Commission viewed the firm s overlapping interests in the energy sector as a threat. This may just be the start. The buyout industry boom has created behemoths with potential for market abuse. That s the read from last week s Carlyle crackdown.

Time for Suez to call off the merger with GdF

1 Dec 2006

A French higher court decision has postponed the deal until July 2007. This looks like the final nail in the coffin. For Suez shareholders, seven months would be too long a wait. The company should call it quits and look for other ways to maximise value.

Russian gas cartel all too plausible

14 Nov 2006

The Kremlin certainly uses gas as a political weapon, as Nato suggests. It squeezed Ukraine and is now trying to get Georgia. But the EU is not at Russia's mercy. Moscow needs its goods and goodwill.

Belgium is another monkey on Suez’s back

3 Oct 2006

Before approving Suez's merger with GdF, the country wants a golden share. That's on top of France's golden share. Having two countries potentially meddling in its affairs could turn Suez into the energy equivalent of Airbus.

UK shouldn’t jump on protectionist bandwagon

18 Apr 2006

News that the UK considered changing the law to protect Centrica from a bid by Gazprom isn t just embarrassing, it s also confusing. It would be a shame if the UK followed its neighbours down the protectionist road. If it plans to do so, it should explain its new approach.

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.