British Energy Share Discussion Threads

[sat69] 11/9/2008 16:34

...and what is your average entry price?

[mmx trader] 11/9/2008 16:30

740 is my exit point, and not wanting to hold over weekend.

[sat69] 11/9/2008 15:56

MMx

I hope you've made money on this shorting. I wouldn't be holding a short position over the weekend though. I would have thought there is an announcemnet due as early as Monday about an agreed takeover.

sat

[mmx trader] 11/9/2008 07:26

still shorting bobp... I see more downside technically.

[louish] 10/9/2008 19:43

Something strange in the trading range today - big up spike just before 4 - moved from down 5 to up 10, thought some news was coming - must be soon otherwise oil price and other news might make EDF think again about raising bid

[bobp] 10/9/2008 15:46

Seems to be holding its own and not breaking through that 722 mark.
I think its in anticipation of some news soon on the EDF etc
I think we'll hear something quite soon, but then again thats my 'long' wishful thinking perhaps!
Still got 800 in my mind as an acceptable compromise which will do me nicely.

mmx, i assume you managed a few bob on the pull back from Mondays USA euphoria. Are you still short? Could be dangerous but good luck to you, as long as the outcome's over my pp of 711 I'll be quids in.

[mmx trader] 09/9/2008 14:55

682p is my target now, hopefully should do it this week.

[bobp] 07/9/2008 14:05

Some bits...


Pulling out the snippets of info...

''It is understood that EDF is now considering a small increase in the cash price and, crucially, a change to the terms of the CVR that would make it more valuable.'' So, an increase on 765p ( I did think £8 so may not be far off )


''Meanwhile, M&G has done its own analysis on a combination of Centrica and BE. It found that synergies of £4 billion to £6 billion could be extracted from a merger. That would lead to BE shares being worth about 925p, according to M&G's sums.'' There's upside in the share price to 925p but with the main consideration a small increase on 765p that looks a tad high in my opinion

Finally, the govt now wants energy companies to stump up £ to assist fuel bills, although only muted I think.

However, in summary it looks like on the bulls side things are about to be decided and we're looking at an increase. On the bears, the govt wants to extract £ as above.

Either way I hope we get this sorted now.

Good luck next week all.

[sat69] 07/9/2008 09:19

From The Sunday Times
September 7, 2008

EDF close to victory on British Energy
Improved EDF offer for British Energy may sway rebel investors to back £12bn dealDominic O'Connell and Iain Dey
THE French utility giant EDF was this weekend close to securing the shareholder support it needs to seal a £12 billion takeover of British Energy, the UK's only nuclear power generator.

The French group has improved the terms of a bid that was rejected at the end of July by two large shareholders. It is now hopeful of winning the backing of fund manager Invesco, one of the two rebels, which controls 15% of BE.

Together with the British government's share - it has already publicly backed EDF - the French could then count on about 47% of BE's shares voting in favour of the plan, probably sufficient for the BE board to recommend acceptance.

The other rebel, M&G, the fund-management arm of Prudential that holds 7%, is still pushing for a merger with Britain's Centrica.
In July, EDF offered 765p for each BE share, valuing the whole company at about £12 billion. Shareholders could choose to take the cash, or 700p plus a "contingent value right" (CVR) - in essence, a slice of the company's future profits. Invesco and M&G said no.

It is understood that EDF is now considering a small increase in the cash price and, crucially, a change to the terms of the CVR that would make it more valuable. This is thought to involve changing the assumptions made on BE's likely power output and the price it will receive for its electricity.

Some sources close to the talks hope the deal will finally be brought to a conclusion within a fortnight. John Hutton, the business secretary, told The Sunday Times he was "impatient" for it to happen.

Meanwhile, M&G has done its own analysis on a combination of Centrica and BE. It found that synergies of £4 billion to £6 billion could be extracted from a merger. That would lead to BE shares being worth about 925p, according to M&G's sums.

The assumptions are based on Centrica offering five of its own shares for two British Energy shares. Although no such offer is imminent, some City sources believe it was never given serious consideration due to the government's preference for a cash offer and a partnership with EDF.

M&G also believes the enlarged group's improved balance between customer power demand and generating capacity could lead to better customer service, which would be worth £1 billion to £2 billion.

[mmx trader] 06/9/2008 08:58

coming down I think

[bobp] 04/9/2008 20:29

Thanks Louish and sat69, I feel this could go two ways, either the bid gets the french govt green light to up the bid, which I feel will take it to £8+, or it'll be somewhere between £7.30 to £7.99 with some other sort of tactic attached, although what I'm not sure.

So perhaps thats why its been ticking up a tad recently but not enough to push it to the high 700s' yet.

Also, am I right in thinking the UK govt is listening again to Centrica?

What we can be more confident in though is some news soon.Perhaps later this month. In a way I'll be glad so that once we know one way or another I can free up capital to other stocks as there are some bargains about. Almost daily the banks go up and down 3 to 6% !

mmx trader, I hope it drops a bit soon so if you are locked in you can make a bit, but otherwise I think the runes say 'up' soon on news..or its priced right with a sweetener of sorts although the big shareholders will have to agree and nobody wants another stall.

All imohi etc etc

[mmx trader] 04/9/2008 07:10

im watching bobp..still short on this

[mmx trader] 04/9/2008 07:10

im watching bobp..still short on this

[sat69] 03/9/2008 20:30

EdF Has Deal With British Energy's Two Big Fund Holders-Source

Wednesday September 3rd, 2008 / 15h48



PARIS -(Dow Jones)- State-controlled utility Electricite de France SA(1024251.FR) has agreed with the two funds that blocked its previous offer to acquire British Energy Group PLC (BGY.LN) to sweeten its bid, a person close to the situation told Dow Jones Newswires Wednesday.
The agreement was reached Tuesday night, the person said.
But the French government hasn't yet given the green light to a sweetened offer for British Energy, the person said, adding the government is reluctant for EdF to sweeten the cash element of the previous offer.
EdF previously had offered shareholders either a full cash offer at 765 pence a share, or 700 pence a share in cash and contingent value rights.
But two of British Energy's largest shareholders -the funds Invesco and M&G Investment -said the price was too low.
So on Aug. 1, EdF said conditions for a deal weren't met after "very detailed discussions."

[louish] 03/9/2008 20:19

Bob P - Look on Google Finance - news coming through that deal has been struck and EDF just awaiting confirmation from French Gov that they can submit the offer - fingers, legs and arms crossed that we get an uplift in next few days

[bobp] 03/9/2008 19:58

mmx and co,
Hi all, been away for a week, nice to see the rise but still no news I see re the takeover etc. Mind you, Sept was when I was expecting something and its only just arrived. Watch that shorting mmx, don't get caugt out mate!

[mmx trader] 02/9/2008 13:23

oh dear...dead cat bounce? hopefully

[mmx trader] 01/9/2008 08:22

keep shorting..

[speedy] 31/8/2008 07:18

Hmmm ... things that could boost the share price:

possible "raising load above 70%"

Hunterston's ten years from start to electricity production, and now this

"Yesterday, a "highly placed source" in Moscow was reported as saying the Kremlin intends to turn off the oil export pipeline to the EU on Monday, so great is Russian ire about the rhetoric in Brussels and warships in the Black Sea. If this is true, we are entering a whole new ball game in what has come to be called "energy security". Even if the report proves false, the west should be on red alert about energy export weaponry.

Barely noticed in the runup to the crisis in Georgia, Russia signed a deal that gives its energy giant Gazprom control over gas supply from neighbouring Turkmenistan - one of three former Soviet satellite states around the Caspian sea on which Europe is pinning its hopes for a future gas supply. This Turkmen coup deepens Britain's possible energy dependence on Russia as North Sea production falls away. "

[speedy] 29/8/2008 10:11

BGY have not yet posted comments on the ongoing talks, however this has appeared:
29th August 2008

British Energy is celebrating the return to service of Hunterston B nuclear power station, and achievement of the target of reaching 70% power generation on both units - sufficient for the needs of some one million homes.

In what has been the company's largest maintenance programme ever, significant boiler inspection and repairs were carried out on both reactors. The work on Hunterston B reactor 3 was completed in May this year with power output increased from around 59% to 70%. Reactor 4 returned to service on 16 August. The unit was running at around 61% before this outage and has now also successfully achieved 70% output.

During the three-month Reactor 4 outage:

· The station achieved best ever safety performance with no injuries or accidents, or reportable environmental or nuclear events.

· £13.7 million investment was made on replacing turbine rotors, pipework and general maintenance.

· 163,321 man hours of specialist boiler inspection training was completed for both outages

Hunterston B has produced more than 217 Terawatt hours (TWh) of electricity generation since first supplying the National Grid in 1976. This is enough electricity to power the whole of Scotland, for a year, six times over.*

The company is developing strategies for raising load beyond 70% in the future although no timescales are agreed yet.

Hunterston B provides 528 full time jobs and injects £30 million into the local economy through staff wages, as well as spending around £58 million on other costs last year.

During its 32 years' operation so far the station has avoided around 140 million tonnes of CO2 entering the atmosphere. To get the same annual carbon avoided benefit would require the entire population of Edinburgh to reduce their carbon emissions to almost zero.

British Energy's chief executive, Bill Coley, praised the staff who have successfully brought the station through its challenging programme. He said: "I commend everyone at Hunterston B and the entire British Energy team who has supported them.

"This has been the largest outage British Energy has conducted and getting these units up to 70% load is testament to all the investment we are putting into the plants, improving our human performance and work processes and further enhancing our nuclear safety culture."

Station director Mark Gorry said: "We are delighted to see the units achieving 70% output as planned, and it's down to great teamwork by everyone involved."

* Energy Trends, December 2007 - Total energy consumption in 2006 for Scotland = 35.7 TWh. 217/35.7 = 6.08 years

Notes for editors:

· Hunterston B has two Advanced Gas-Cooled Reactors (AGRs)

· Construction began in 1967 and the station started generating electricity to the National Grid on 6 February 1976

· The station currently employs 528 full time staff

· The station's current accounting life runs to 2016 – a 5-year life extension was agreed in late 2007

[mmx trader] 27/8/2008 11:21

far to long... mirex

[mirex] 27/8/2008 10:39

Still don't see it mmx! IMHO! not even day trading this now, it's hovering around here for some time.

[mmx trader] 26/8/2008 21:10

it failed to trade and close above 725,that was my target, its down from here