British Energy Share Discussion Threads

[shotoshi] 18/10/2004 16:46

ndrana, can't disagree with you on that and couldn't have put it better myself!

[shotoshi] 18/10/2004 11:38

I didn't have the bravery see it through (whatever "it" is). Switched my BGY profits into BVC and KWL for some short term action.

Good luck to all.

[eastbourne1982] 18/10/2004 10:55

chilling, very, very chilling.

[simon cawkwell] 18/10/2004 10:50

Gentlemen,

Some may be interested to know that Ofex have this morning advised me that they have received no request from BGY that Ofex's MM's trade BGY once it is delisted. Of course, BGY will not so ask Ofex.

But that does not stop Ofex's MM's making a market. And I hope they will. We'll see. (Perhaps others should contact Ofex pointing out the desirability of Ofex offering a market in BGY.)

Simon Cawkwell

[snogger] 18/10/2004 06:48

IDRC,

I think you are wrong.

Settlement has to take place. just because they are delisted that does not mean the buyer of shares (for arguments sake done today) does'nt get the shares he has bought. He has'nt bought something that the seller can dream up in the future. Its for deelivery now (or 3 days fwd is usual). Non delivery will cause shorters a problem. Spread betters closing shorts are in probably in good shape because the SB companies will have borrowed the stock when the bets were opened.

As SK said there will be a market in these shares if they are de-listed just not on the main board.

The purpose of the de-listing was to circumvebt stock exchange rules.

Still dont agree with your price calculations either

[retired captain] 16/10/2004 10:04

Simon - Nice to see you are still 'out there' - As I've written previously,
when this stock dropped to -90% I wrote the whole lot off to experience, and will be around until the final outcome - whatever/whenever that happens to be.
The roller-coaster over the past 6 months has been excitingly nerve-racking and thus provided something for my money I guess.
The Show however seems to be winding down, with October 21st bringing an end to my Shares, at least in their present form.
Your occasional posting has been a help throughout the year and I'm sure many others would have found this so.

Would you agree that there MUST be considerably more value in the Shares
than the present price. If only based on the fact that so many shares have been bought in largo amounts by various Institutions.
Have you any predictions re forward pricing?
How about your updated thoughts Wally?

[simon cawkwell] 16/10/2004 08:56

Gentlemen,

If I can be excused for claiming to be knowledgable (but I have done all this before), those who are short will be able to buy stock off others on the register. Further, there will surely somewhere (Ofex?) be a grey market in BGY ordinaries.

Simon Cawkwell

[charlie] 15/10/2004 22:13

Thanks very much. What you say makes sense although would have needed City Index to agree and let me run the position across the delisted period to the other side.

Anyway I'm out now with good profit from 20p but will watch with interest.

[ldrcvem] 15/10/2004 20:04

Charlie
10.8p to answer yr first question by reference to todays bond price close.
Bears are under no obligation to close by delisting date. They cannot be "bought in" as the shares will be delisted. They will close the sale by buying and delivering new BGY shares and warrants in the appropriate quantities whenever they get relisted( sometime in Jan 05). BGY bonds(down today) suggest a price of around 10.8p(including warrants).

It is bulls who have bought on credit who will have to sell by thursday or pay for their shares. Bears can just stay short.

[charlie] 15/10/2004 20:00

From

"What value will shareholders receive if the agreed restructuring proceeds?

If the agreed restructuring proceeds and the scheme of arrangement to be proposed to shareholders becomes effective, shareholders will receive 2.5 per cent. of the ordinary share capital of the restructured Group and warrants over a further 5 per cent. If this scheme doesn't become effective but shareholders approve the disposal of the Company's business to a holding company of the restructured Group, shareholders will only receive the warrants over 5 per cent. Otherwise shareholders will receive nothing."

...So maybe the shorts are betting that the scheme of arrangement won't become effective (eg because the shareholders are too disgusted/ fed up/ apathetic to give it the requisite 75% vote).

In these circumstances it would seem the shorts only have to deliver warrants over 5%...which is difficult to value and perhaps can be argued to be worth very little.

[charlie] 15/10/2004 19:08

Something odd going on here.

When I saw the Stock Exchange notice on Thursday night announcing settlement problems I thought there would be a squeeze and decided I would have to close my short asap. (For some reason this first announcement didn't appear against the BGY ticker, although the one on Friday night did.)

But in fact they opened very calmly on Friday and I closed (via a spread bet) with no trouble. And even stranger they ended the day DOWN a 1/4 point.

It seems the shorts (apart from me!) aren't worried about closing.

The shorts presumably believe that what they will have to deliver under rules S760/761 above is obviously less than the price they're selling at. But the buyers seem to be sophisticated players too, so if it's obvious can't they see it...?

Something odd here. Comments anyone?

[hamlins] 15/10/2004 18:21

Stock News - RNS

Stock Exch Notice - N36/04

RNS Number:1621E
London Stock Exchange Notice
15 October 2004


London Stock Exchange PLC

10 Paternoster Square

15 October 2004 London EC4M 7LS

Telephone [phone]

www.londonstockexchange.com


For the attention of the
chairman/senior partner/compliance officer,
all member firms N36/04


STOCK EXCHANGE NOTICE

BRITISH ENERGY PLC


Introduction


1. Market participants will be aware that market status messages are currently being issued in
relation to the ordinary shares of British Energy plc ('British Energy'). The purpose of these
messages is to notify the market of current significant settlement difficulties in these shares.


2. The ordinary and 'A' shares of British Energy are expected to be delisted at 8:00am on 21
October 2004. Given the current settlement backlog in the ordinary shares, it is possible that
purchasers of these shares will not receive delivery before the ordinary shares are delisted.
In these circumstances, the Exchange wishes to clarify the settlement process and the
application of the Exchange's settlement rules.


Effect of delisting


3. In the event of delisting, the ordinary and 'A' shares will be removed from the Exchange's
trading system with effect from 8:00am on 21 October 2004. The delisting will not affect the
normal settlement processing which will continue as normal within the CREST system.


Exchange settlement rules


4. The Exchange has a number of buyer protection rules which apply during corporate actions. The
application of these rules is dependant on the nature of the corporate action.


5. By way of example, should the company undergo a non-optional stock situation where a holder of
securities is entitled to other securities, then Exchange Rule S760 will apply. This rules
states that where the seller fails to deliver securities as dealt, the seller is obliged to
deliver the results of the event against the original bargain consideration.


6. The full text of Rules S760 and S761 is set out below:


S760 - Where the seller fails to deliver securities as traded, prior to the last time for
registration in a non optional stock situation (such as a consolidation, subdivision,
redemption, scheme and other stock situations where the holder of the securities has no option
as to whether or not to participate), and the buyer has not given instructions to elect for any
alternatives which may be available, the seller shall be obliged to deliver the results of the
event against an amount of money equal to the original bargain consideration.


S761 - If the buyer has paid the seller in advance of delivery and the seller fails to deliver
the result of the event or specified election by the day following the day on which the buyer
would have received the results of the event (had the underlying securities been delivered to
the buyer in sufficient time for them to elect or be on the register in their own right), the
seller shall reimburse the buyer on that day an amount of money equal to the original bargain
consideration.


(NB The obligation of the seller to return the original bargain consideration to the buyer under
Rule S761 does not affect any obligation under Rule S760).


Please see the following link to the full text of the Exchange's rules:
www.londonstockexchange.com/en-b/products/membershiptrading/rulesreg/ruleslse/


7. The Exchange continues to work with CRESTCo and LCH.Clearnet in monitoring the settlement
situation.


8. Any comments or queries on this Notice should be addressed to John Newbury, Trading Services,
telephone [phone] (STX 31615) or email: [e-mail].


Nick Bayley

Head of Trading Services


This Stock Exchange Notice will be available on the website at
www.londonstockexchange.com/en-gb/products/membershiptrading/rulesreg/
stockexnotices/2004/

[hamlins] 15/10/2004 18:17

Top News Stories

LSE says British Energy to be delisted Oct 21

Just got this from TDWaterhouse but could not get any further information. Does anyone got the latest.

[tupros123] 15/10/2004 15:27

The world will have been well and truly turned upside down if the FSA turn down the de-listing. You will be suggesting that the BE board will start taking shareholders interests seriously next.

[kanus] 15/10/2004 15:17

Everybody keeps assuming the de-listing is going ahead. FSA haven't agreed to it yet !!!!

[corski] 15/10/2004 15:15

I have just spoken to my broker he said In its statement, the LSE said the growing number of unsettled British Energy
trades had prompted it to issue "a Market Status Message and will continue to
do so until the situation is resolved."


They had also been reminded of there responsibility under rule 3701





British Energy's shares closed up 1.9% at 13 pence Thursday.

[snogger] 15/10/2004 14:21

well i for one wont be lending them any stock to use for settlement.

hope they all have to pay through their noses.

I would have thought that there was sufficient stock around to cover the shortfall though

[martin036] 15/10/2004 13:42

That can only mean this stock will rise ahead of the de-listing next Thursday as shorters close their positions and brokers have to physically buy back stock they never had to sell in the first place.
Or am I being too naive?

[corski] 15/10/2004 13:31

Call Us In London: 44-20-7842-9464
E-mail: [e-mail]


1152 GMT (Dow Jones) LONDON--Counterparties to British Energy (BGY.LN) shares
are having a difficult time settling the stock because short sellers are
looking to buy stock before BE delists the company on Oct 22, says a fixed
income analyst Fri. The demand is high and brokers are promising stock they
cannot deliver. The London Stock Exchange warned Thu that "a significant number
of outstanding settlement positions" had built up in the stock. BE -1.8% at
13p. (NAS)


(END) Dow Jones Newswires

15-10-04 1153GMT

101504 11:53 -- GMT

[martin036] 15/10/2004 13:29

Q - Do you think this will be re-listed by 31/01/05?

[quidzinn] 15/10/2004 13:18

BGYered,

I'm going to sit it out until they have sorted themselves out post reconstruction. I think the share price is discounted at the mo. to allow for the uncertainties surrounding the recon. Looking what has happened to other cos post d4e the long-term shareholders have been all but wiped out e.g. MONI but I can't see this happening with BGY there is a bigger slice of a better pie to be shared out.

My target is 50p based on the current share price

Q

(no research, no knowledge - pure seat of the pants instinct)

p.s. Kumala I hope you haven't lost on WHOG as well ...( another pump n dump share )

[kumala] 14/10/2004 18:16

check out WHOG up 66% today I'm out of BGY, its been a red hot multibager of a loss all the way down.
K :/

[martin036] 14/10/2004 15:15

A few shorters stop losses hit there on that spike up to 16.25p.