British Energy Share Discussion Threads

[mirex] 04/8/2008 07:13

Centrica may have seen the complications towards foreign investmant (edf) as an open door to them and will want as close to 100% as government allows. They are sounding out major investors accordingly, pronably with a slightly increased price in mind. It's all good long term, as i said, it's complicated this one, not a normal takeover and isn't a short term punt. We may still see £10-£12 though. Major shareholders see the value in foward electricity prices and nuclear energy so want it too.

[impecunious] 03/8/2008 09:53

S. Telegraph and S. Times today reporting potential Centrica all share offer for BGY - subject to shaeholder and government backing.

Centrica were already on to take 25% off EDF in last week's deal .... so presumably what is now also on the table are various options on a scale whereby EDF takes 0 to 75% and Centrica takes the balance (ie. something more than the 25% originally proposed).

[bobp] 03/8/2008 09:11

Morning folks, a good bit in the FT if anyone saw it.
I think from reading all the news in papers etc that it'll be back on again soon, I think this sums it up..

1. Govt + BGY + EDF want to agree in the end.
2. Eyes are on BGY and EDF, as posted above, very 'Shoddy' to say the least.
3. The two major holders want more, but what is 'more' and could it be wrapped up to please all. ie, a low share price with some sort of enhanced benefits later. If thats the case £7 may be the limit.

I'm hoping things will be back on the table for circa £8, I think thats a good compromise.

I bought and sold, glad I did. May be time to hop back in though again and wait-see. I think there's more upside to down, thats if it opens at 699/702 ish, anymore and it gets risky. Therey could agree £7 plus perks not for jo public shareholders

[louish] 02/8/2008 10:58

A2584728 - I hope you are right but I fear the worst, I here that Invesco want at least £10-£12 per share. I just don't think EDF will go much above current deal although I did read that the shares on offer could be worth anywhere between £1 and £3 depending on future output and electricity prices - sounds like a good deal to me?

I hope the board at BGY sack their advisors, how could they get to the eve of announcement and then only find out that the 2nd and 3rd largest shareholders would not do the deal - shoddy, very shoddy.

Two things I would like to know, any views welcome:

1. If everybody thinks BGY is worth £10-£12 per share then why are they trading at just under £7?

2. What is plan B and how long before share price gets anywhere near the figures quoted above


I had the champagne on ice on Thursday night - looking to start the weekend with a bang and ended up drowning sorrows in vodka and went to bed depressed....

[a2584728] 01/8/2008 09:55

I think you will find that a deal will be completed this weekend, even the government have commented that they are disappointed that a deal could not be agreed.

[rebess] 01/8/2008 08:10

Mirex

Your analysis seems to have been spot-on.

I'm still puzzled as to how a responsible news-service can report a done-deal when in fact it is not true!

[speedy] 01/8/2008 08:04

The UK does not have a nuclear industry. I agree that this is a much bigger issue - this link suggests we may aspire to be an "intelligent customer"

[krowelet] 01/8/2008 08:03

They have no choice, britsh gov. and bgy have not got the money to build new generation atomic plants, EDF have.

[karateboy] 01/8/2008 07:34

The issue of selling or not selling BGY is much bigger issue than just simple a company take over. It is future of UK nuclear energy at stake. Do the government wants to sell the only industry left for UK, which future generation depends on for energy, being fission (current technolgy) or fusion (future Technology) to French government (i.e. EDF).

[a2584728] 01/8/2008 07:26

This deal will happen and the fact that there is no agreed bid at this time may tease the likes of Suez out.

[speedy] 01/8/2008 07:25

interesting that the suggested "windfall tax" and EDF's reported "conditions for a major development in Great Britain are not right"
get mentioned in the same article.

[mirex] 25/7/2008 13:04

Deal accepted. Unfortunately though, Government will need to agree the whole thing, ensure Centrica have their share, ensure UK retains control over their nuclear generation, EDF will want assurances they can develop certain nuclear sites as THEY want to, UK government will want to impose restrictions on a site by site basis too so there's a whole lotta complications to iron out first before antyhing really happens. As the RNS states, advanced discussions still ongoing.

730p was the minimum BGY wanted, 775p offered, share price wont go much above 730p until these discussions are complete and details emerge. Odffer coudl still collapse too, and other Utilities may still want to have a go at part or whole. RWE for example may still be interested in a few Nuclear sites wheteher from BGy or Centrica or EDF.

This isn't a normal takeover, the future of UK's nuclear generation is at stake, UK can;t be happy France is going to be on control of our most important power source for the next 50 years. Anyone expecting a quick

c5%

profit will have to wait i think, as i am. my 688p buy earlier in week was well timed, fortunate and i will hold it until we do get nearer 775p.

[rebess] 25/7/2008 12:16

Strange situation this one.

TFNS have already announced a done deal and have not subsequently corrected this bulletin.

So what's going on?

[praipus] 25/7/2008 09:57

Why is the share price £7.26 if the T/O is £7.75? arbitrage?

[flying pig] 25/7/2008 08:51

Easy cash if buying in the market? Buy c 734 + stamp duty sell c 775 = + 5%

[mirex] 25/7/2008 08:35

Indeed! It's nice to be right for a change in this game!

:)

[abcd1234] 25/7/2008 06:17

MireX....spot on re the 775p:



25/07/2008 @ 06:56
UPDATE 1-British Energy agrees EDF takeover at 775 pence


Nice ;O)

[bobp] 24/7/2008 20:31

out at 730. feel it may go up, but profit taken.

[rebess] 24/7/2008 13:42

I wonder how this will all pan-out for cna shareholders.

£3bn is an awful lot of money to find with a long horizon for any returns,if indeed there are returns to be had.

[mirex] 24/7/2008 13:18

£12bn is a fair price, equating to around £7.75.

Hopefully, UK PLC will make this easy as they coudl get tied up in politics it being a French bid (French State owned).

[mirex] 24/7/2008 13:10

EDF, Centrica to buy British Energy next week for over 12 bln pounds

LONDON (Thomson Financial) - French energy firm EDF and Britian's Centrica
Plc. will early next week announce they have jointly bought UK nuclear firm
British Energy Plc. for over 12 bln pounds, the BBC website reported, without
citing any sources.
According to the report, Centrica is negotiating with EDF to be its minority
partner in the acquisition and may end up paying around 3 bln pounds for a 25
percent stake.
However, the deal is not yet finalised and could still be delayed, the
report said.

[mirex] 24/7/2008 12:56

French energy firm EDF and British Gas owner Centrica are set to announce that they have bought UK nuclear firm British Energy, the BBC has learned.

The BBC's business editor Robert Peston said EDF and Centrica will probably announce early next week they are paying more than £12bn for the company.

British Energy, which owns eight UK nuclear power stations, has been on the auction block for months.

The deal could raise as much as £4bn for the Chancellor.

British Energy has been part-owned by the UK government which now wants to sell its stake.

One source told the BBC that "there's a push to conclude a deal before the holiday. We hope it will be done in the next few days."

British Energy's board is insisting that EDF pay more than 750p a share, perhaps as much as 775p - which would value the company at well over £12bn - having rejected an offer of 680p made by EDF in May.

The deal is not yet finalised and could still be delayed.

But as and when the deal is done, up to a quarter of Britsh Energy is likely to remain British.

Ownership

Centrica, owner of British Gas, is negotiating with EDF to be its minority partner in the acquisition and may end up paying around £3bn for a 25% stake in British Energy.

However the deal is likely to be controversial on several fronts, including whether EDF should be able to develop new power plants on existing British Energy sites.

There is also the issue of whether the UK's energy needs should be placed in the hands of a firm run by a French company.

Another key concern is what will happen to the money that the Department for Business is tipped to make when it sells its share in the nuclear firm, and how that money will be invested.

[mirex] 24/7/2008 12:53

Just beat me to it! Yep, BGY have been approached! Nice tiem to hold!

:)