Saudi snaps up Grid stake

Article Abstract:

A stake of 12.5% in National Grid was bought by just one buyer from Hanson, and the ultimate owner may be Olayan Group from Saudi Arabia. The direct buyer was HSBC James Capel, and it is unclear whether Olayan aims to be a long term investor in National Grid, or whether it is supplying hedging cover for the direct buyer. National Grid has made a formal request for additional information about Olayan. The UK government holds a stake in National Grid, allowing it to prevent investors from increasing their stakes to over 15%.

Author: Hore, Andrew
Electric Power Trans & Distr, Electric Power Transmission, Control, and Distribution, Electric power supply, Electric power distribution, National Grid Company PLC

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Double or quit

Article Abstract:

Power Gen and National Power are two UK electric power companies which underwent their last privatization sale in 1995. Investors have to make a decision on these shares in 1996, and can either sell or pay an instalment. The shares are not likely to perform well until regulatory issues have been settled. These issues related to bids for electric utilities which are being examined by the Monopolies and Mergers Commission (MMC). The bids appear likely to secure approval, but this is not certain.

Author: Joyce, Conor, Barron, Catherine
Electric Utilities, Electric Power Generation, Transmission and Distribution, Electric power generation, PowerGen PLC, National Power PLC, Electric power production

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Subjects list: Securities
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