PowerGen shares surge on deal hopes

Article Abstract:

PowerGen PLC, the second-biggest generating firm in Britain, UK, saw its shares rose to 801.5 pence ($13.41) in London, UK, due to reports it is negotiating to buy the British distribution company of Richmond, VA-based Dominion Resources Inc. The deal hinges on whether the Labour government allows PowerGen to acquire the distribution firm, which was sold in 1997 for around $2.2 billion. Sources said PowerGen will shell out over $3 billion for Dominion's UK assets. If the deal pushes through, Dominion will be the first US utility to exit the British power markets.

Comment:

Sees its shares rise in London, UK, due to reports it is negotiating to buy the British distribution co of Dominion Resources

Electric Power Distribution

---

Enron to buy U.K.'s Wessex Water

Article Abstract:

Enron Corp., an electric company based in Houston, TX, has agreed to acquire Wessex Water PLC, a UK-based water and sewage firm, for $2.2 billion. The deal will enable Enron to enter the international water industry which is valued at $300 billion per year. Industry Analysts, however, were dubious about the viability of Enron's move that caused Enron's shares to drop by 2.2% to $55.25 in the New York Stock Exchange. Enron Vice Chairperson Rebecca Mark said the company is committed on purchasing water assets in Europe and South America.

Comment:

Agrees to acquire UK-based Wessex Water PLC for $2.2 billion

United States, Water Supply and Irrigation Systems, Natural Gas Distribution, Water Utilities, Gas Transmissn & Distributn, Gas industry, Enron Corp., Wessex Water PLC

---

PowerGen to acquire East Midlands PLC for $1.41 billion

Article Abstract:

PowerGen PLC purchased Dominion Resources Inc.'s East Midlands Electricity for $1.4 billion, in additon to assumption of $1.8 billion in debt. The acquisition came after Dominion realized that there is no probable growth for East Midland electricity retail market in the UK unless it teams up with another regional player. US-based utilities with operations in the UK, have been hurt by high profit tax and higher-than-expected costs as the UK paves the way to a deregulated utility market.

Comment:

Sells East Midlands Electricity to PowerGen for $1.4 bil, in additon to assumption of $1.8 bil in debt

Electric Utilities, Electric Power Generation, Transmission and Distribution, East Midlands Electricity PLC

Similar abstracts:

• Abstracts: Providing a sharper focus. Buyout team hoping for legendary success
• Abstracts: Mirror Group stock shines as suitors reflect on bids. Mirror to sell TV interest in refocusing. C&W Communications stake set for sale
• Abstracts: Severn Trent eyes expansion, posts profit gain for latest year. National Grid seeks U.S. partner, posts 2.8% decline in pretax profit
• Abstracts: Telecom Italia revives Unisource deal. Treasury is poised to sell Telecom Italia interest. Olivetti's shares climb on news of Colaninno buy
• Abstracts: Gucci's quarterly sales rise despite Asia turmoil. Orangina rejects PepsiCo's new offer

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.