British Energy Share Discussion Threads

[sat69] 21/9/2008 22:39

I think everyone will push for cash. If I can get 720p or below tomorrow, I may buy in.

[bobp] 21/9/2008 22:14

Thanks Sat69, i just hope i get a choice and have the 774p not some convaluted CVR thing i've never heard of

[sat69] 21/9/2008 10:14

EDF to table £12.4bn British Energy bid
Andrew Leach & Helia Ebrahimi, Financial Mail
21 September 2008, 9:28am
French energy giant EDF will table its long-awaited £12.4bn bid for British Energy this week, providing a huge cash windfall for the Government and kick-starting a massive rollout of new nuclear power stations.

The recommended bid for the nuclear generator - expected at about 774p a share, which is 9p a share higher than an earlier EDF proposal - could come as early as Tuesday, providing a boost to the Government during the Labour Party conference in Manchester.
EDF's initial offer was scuppered in July at the eleventh hour in the face of opposition from BE's major shareholders, Invesco and M&G, which were holding out for a bid of 800p a share, suggesting that high wholesale energy prices demanded a high valuation on the generator.

However, the slump in oil prices since then is believed to have persuaded them to back a revised deal with a slight increase in cash and a tweak to the amount of 'conditional value rights', which will enable investors to take a limited share in BE's future profits.

A recommended deal will be a relief to the Government, which will raisebns of pounds from its 35% stake as well as securing a strong parent for BE, which it hopes will spearhead a new generation of nuclear power stations.

The Government gave the go-ahead last January for new power stations to be built to help cut carbon emissions and reduce the UK's reliance on imported energy.

BE, whose shares closed last week at 7201/ 2p, operates eight nuclear power stations and also has land around them where new plants could be built.

EDF, which was always the Government's favoured bidder, has much experience in building nuclear stations. It operates 58 in France that provide 80% of the country's electricity.

Following the takeover, the French are expected to continue to pursue talks with Centrica, owner of British Gas, to take a stake of about 25% in BE.

That move would enable EDF to offset some of the cost of the takeover while involving a British company with access to millions of customers.

EDF, which is 85%-owned by the French government, has 7.9 million customers in the UK.

[bobp] 21/9/2008 09:41

According to the FT there's a good chance of a deal being made this week and as of Friday 774p a 9p increase, or, 700p plus CVRs
Not sure if you get an option, I clearly like the 774p but unsure if the 700p may be imposed and if so what value the CVRs have to me as a shareholder.
So, fingers crossed but anyone with more knowledge please contribute...

[bobp] 19/9/2008 15:47

mmxtrader,
Has the Govts decision converted you to a 'Longer'?

[mirex] 19/9/2008 14:42

itsnobigdeal: Government needs it's £4Bn to cover the banking bailouts and for it's green enrgy commitments. I don't think they really care if it's more or less £4Bn too. They know BGY is worth £10Bn+ and with energy the way it is, it's only +ve from there, hence my prediction that BGY woudl hover in a range of about 180-230 and i've been trading this range successfully for months. Even today a limit order of 710p kicked in and sold out at 725p. 730p was the previous offer so +/- 5% of this is where it will stay until a new offer is made. The markets turmoil hasn't even touched BGY on the up or down as it's stuck in this range until the EDF vs. Shareholders debate is complete. Shareholders are becoming more realistic about the price now as £12 is a tad high in this environment. Shareholders too feeling the oinch and may be greatful for the new £12Bn offer. With the complexities around state ownership of this share i can't see any 'paper' offering being considered. Just cash.

If EDF drag their feet though, RWE, EON and others may remember what a good opportunity this is and i think the french know this.

[bobp] 18/9/2008 07:57

EDF is hoping to seal a £12bn takeover of British Energy next week, despite having a similar bid rejected by the UK nuclear generator last month as too low. While the board of the French state-controlled energy group did not take a decision on a fresh bid when it met yesterday, sources close to the company believe the falling oil price makes its 765p-a-share cash offer look more attractive to investors such as Invesco and M&G, who opposed EDF's earlier offer, writes the Independent

[itsnobigdeal] 18/9/2008 07:54

MireX - If the government really must sell BGY how do you think that that is going to play out and at what price?

[grcs4] 17/9/2008 22:59

Surely only a matter of time??



Regards

GRCS4

[louish] 17/9/2008 20:36

Looks like we are in for a drop - mmx will be smiling tomorrow....

If I was EDF I would wait another couple of months and oil will have fallen further and deal could be done cheaper - bet Mr Invesco isnt so smug now

[bobp] 17/9/2008 19:41

Bit on TFN this evening that no decision has been made yet. I think people expected todays mtg to come up with an offer/price.

[mmx trader] 17/9/2008 12:15

im hoping for a drop in that amount lol.

[bobp] 16/9/2008 17:57

Interesting. The EDF boss said he wouldn't pay just 'any price' for BGY, which is undestandable, I think thats what made the share price drop a tad, that and the general market.
But, the above link by PETOIL seems to hit the mark with 775p which, put against the comment is about right. At this moment they're about 722p. thats a rise coming perhaps of 53p. ( All in my hopeful honest opinion etc..)

[bobp] 15/9/2008 17:34

G'day folks. News out in France EDF are mtg. The share price has not been announced/decided yet. I'm hoping for a bigger share price than 765p based on the fact that it was rejected for being too small.
To please the big guns they have to move it up, I just hope they don't do anything off the wall like 700p plus some 'paper' nonsense.
mmx, you must be quids in after todays market mr shorter, I wish I'd gone short on Banks Friday I could have retired for life!
Some bargains for the brave out there.
Incidentally, despite the world crashing, BGY hasn't dropped a penny! :-)

[mmx trader] 15/9/2008 13:09

anyway other shorts are doing well, i shall therefore stick with this one 2.

good luck holders and dont forget the market is never straight forward.

[sat69] 15/9/2008 13:08

Mmx, the last time I read an update (about a week ago) it was that the revised bid will be higher than the rejected bid

[mmx trader] 15/9/2008 13:05

most of it is already priced i think, cant go any higher than rejected bid and on top of that its a foreign company lots of problems with integration.

[sat69] 15/9/2008 12:46

The market is pricing in a bid. I have no position and wish you all the best Mmx.

[mmx trader] 15/9/2008 12:43

dont think there will be a bid... would have come out already

[sat69] 15/9/2008 12:22

Mmx - I believe BGY has decoupled from the market. The share price is all connected to bid or no bid.

[mmx trader] 15/9/2008 12:07

...should soon catch up with market

[mmx trader] 15/9/2008 09:42

still in though

[bobp] 14/9/2008 17:25

I read they had a mtg last Monday and we are due to hear this week. Fingers crossed!

[bobp] 11/9/2008 17:39

The requirement by the govt has had a weight on energy gps, but this will be passed on so won't effect profits.
I think we'll hear some good news any day now. Anyone who hasn't cottoned on to this must be in a cave somewhere!