Renewable Energy

Veolia comes down to earth

8 Mar 2004

The French utilities conglomerate s goals look easily achievable. This is welcome news considering its overreaching past. But Veolia s shareholders shouldn't get too excited. The 40% of shares owned by banks and Vivendi will continue to depress the shares.

Suez should break itself up

18 Nov 2003

Or at least that is what chief executive Gerard Mestrallet should do next if he really wants to boost shareholder value. The only problem is that it s not clear that Mestrallet is prepared to assetstrip the company that he built.

Veolia follows Suez with US cleanup

24 Sep 2003

The French water group is removing the noncore bits of its US Filter arm to cut debt by E2bn. Veolia is streamlining its earlier acquisition binge rather than repudiating it, like former parent Vivendi did. Shareholders like the idea.

Suez needs to sharpen its strategy

5 Sep 2003

The financial firefight is over. In just nine months, Suez has sold E10bn of assets, and hit debt targets way ahead of schedule. But a sumofparts valuation shows how much work could still be done. The group is penalised by a large conglomerate discount.

Suez to sell US water unit for $4bn – reports

3 Sep 2003

The French utility is getting serious about its debt reduction plans. Suez has already sold some E6bn of assets this year. This drastic kill or cure approach to underperforming assets is defensive, however. Suez still needs to show it can grow profitability.

RWE restructuring plan hits early snag

13 Aug 2003

The German utility has botched its attempt to buy out municipal minorities in its gas subsidiaries. The company insists it won't be forced off tack but the rebuff is still an ill omen.

Investors brace for other UK water sector rights issues

29 Jul 2003

United Utilities £1bn rights issue has put investors on their toes. The fear is that other firms will follow suit to fund investment. Perhaps. Until now, they ve stuck to the devil they know debt rather than the uncertain outcome of a review still a year away.

United Utilities launches £1bn rights issue

28 Jul 2003

Unlike rivals that have geared up heavily, the UK utility wants to fund itself with a big slug of equity. This only works if the regulator allows it a higher return at the forthcoming price review.

RWE’s new boss stamps authority with restructuring

27 Jun 2003

Harry Roels is trying to wrestle the unwieldy German utility to the ground with his new restructuring plan. But what he can achieve modest cost cuts and a slightly simpler structure reveals his limits.

Bream scrabbles for new AWG bid backers

17 Jun 2003

It's still up in the air whether the investor consortium can pull together a bid for the UK water company by Wednesday's deadline. But even if it fails, other bidders may come forward to try and break up AWG.

Phoney bidding war for AWG limps on

4 Jun 2003

Now CVC may reportedly enter the fray as well with a potential offer for the British water company. AWG is putting up a strong defence. The real enemy is not West LB or CVC, but the looming regulatory price review.

Suez sells Northumbrian to investor group

19 May 2003

In effect, the French group is floating the water company rather than flogging it to private equity interests. Suez had special reasons for doing so. But it is a blow to private equity that it can t outbid the stock market in a bear market.

Suez shares squished by mountain of debt

14 Mar 2003

Is another Suez crisis in the offing? The recent performance of the French utility s stock seems to suggests so. And that s despite a new strategic plan, no obvious liquidity squeeze and moves to cut its E26bn of debt.

UK water M&A comes to the boil

10 Feb 2003

Private equity is swooping. AWG has got one offer. Suez s Northumbrian unit is for sale. Southern Water has already gone. The boomlet is odd for several reasons not least that gearingup a water firm requires almost no equity at all.

If staid is in, UK water firms the height of fashion

5 Dec 2002

The sector has outperformed the market by 200% since 2000 and still offers investors a chunky 8% dividend yield. Normally, that signals a dividend cut is on the cards. But in this case it s not necessarily so.

If staid is in, UK water firms the height of fashion

5 Dec 2002

Vivendi places E1.9bn Environnement stake

25 Nov 2002

The conglomerate has offered an inducement to persuade EdF and a range of mostly French financial institutions to buy in. Not only do they get to buy at a 10% discount. They also get a twoyear option to buy the rest of the stake for only a 6% premium.

Vivendi places E1.9bn Environnement stake

25 Nov 2002

Fears are growing that RWE is splashing out too much to buy American Water Works Inc., says David Reilly.

18 Nov 2002

Cegetel: Belgacom enters the fray

8 Nov 2002

The Belgians may help Vivendi preempt Vodafone s offer for BT s Cegetel shares. Belgacom would then discuss a merger with Cegetel. The funding may be feasible if Vivendi exits Environnement fast. But the followon merger looks horribly complicated.