European Utilities Correspondent
Peter's Feed
Apr 30, 2010

U.S. sale highlights risks of E.ON’s M+A strategy

FRANKFURT (Reuters) – On the face of it, E.ON’s $6.7-billion resale of its U.S. unit may appear to be a coup, but the German utility lost money on the deal and has to avoid pricey takeovers in the first place if it wants its shares to shine.

The sale of the Kentucky-based business this week ends one chapter in E.ON’s messy acquisition history: several billion-euro takeovers in Britain, Spain and Russia are not paying off and suggest that the group’s incoming chief executive has to curb the group’s risk appetite.

Apr 29, 2010

E.ON selling U.S. unit to PPL for $6.7 billion

NEW YORK/FRANKFURT (Reuters) – Germany’s E.ON <EONGn.DE>, the world’s largest utility by sales, agreed to sell its Kentucky-based unit to U.S. peer PPL <PPL.N> for $6.7 billion (5 billion euros) in cash, as the U.S. utility refocuses on steadier, regulated operations.

The deal is the largest in the power sector in the last two and a half years, according to Thomson Reuters data.

Apr 28, 2010

Germany’s E.ON sells U.S. unit to PPL: sources

NEW YORK/FRANKFURT (Reuters) – Germany’s E.ON, the world’s largest utility by sales, agreed to sell its Kentucky-based unit to U.S. peer PPL for at least $6 billion, two people with knowledge of the matter told Reuters.

The power provider plans to announce the deal by Thursday morning, the people said, speaking on condition of anonymity.

Apr 28, 2010

Germany’s E.ON agrees to sell US business: sources

FRANKFURT/NEW YORK (Reuters) – German utility E.ON <EONGn.DE> agreed to sell its U.S. business, two people with knowledge of the matter said, in a deal investors expect to yield billions of euros for the world’s largest power company.

“That’s right,” one of the persons on Tuesday said when asked whether the power provider had reached an agreement.

Apr 27, 2010

E.ON agrees to sell U.S. business – sources

FRANKFURT/NEW YORK, April 27 (Reuters) – Germany’s E.ON
<EONGn.DE>, the world’s largest utility by sales, agreed to sell
its U.S. business, two people with knowledge of the matter said.

The power provider aims to announce the agreement between
Wednesday evening and Thursday morning, said the people who
declined to be identified as the transaction is still
confidential.

Apr 25, 2010

E.ON shortlists 3 bidders for U.S. business: sources

FRANKFURT/NEW YORK (Reuters) – Germany’s E.ON <EONGn.DE>, the world’s largest utility by sales, has shortlisted three bidders for the multi-billion euro sale of its U.S. business, three people with knowledge of the matter said.

U.S. utilities Duke <DUK.N> and PPL <PPL.N> are among the bidders, two people with knowledge of the matter said. A financial consortium including Australian investor MacQuarie <MQG.AX> is the third bidder, one person said.

Apr 25, 2010

E.ON shortlists 3 bidders for U.S. unit – sources

FRANKFURT/NEW YORK (Reuters) – Germany’s E.ON <EONGn.DE>, the world’s largest utility by sales, has short listed three bidders for the multi-billion euro sale of its U.S. business, three people with knowledge of the matter said.

U.S. utilities Duke <DUK.N> and PPL <PPL.N> are among the bidders, two people with knowledge of the matter said. A financial consortium including Australian investor MacQuarie <MQG.AX> is the third bidder, one person said.

Apr 23, 2010

GDF Suez bids for German gas supplier -sources

FRANKFURT, April 23 (Reuters) – French utility GDF Suez
<GSZ.PA> is bidding for German rival E.ON’s <EONGn.DE> stake in
eastern German gas supplier Gasag to raise its share in the
business to a majority, people familiar with the matter said.

GDF Suez, which already holds 32 percent in Berlin-based
Gasag, faces competition from the municipal utility holding
Thuega, which is also bidding for E.ON’s 37 percent stake, two
people close to the matter told Reuters.

Apr 19, 2010

Surprising profit growth at Mercedes pulls Daimler

FRANKFURT (Reuters) – Daimler’s <DAIGn.DE> Mercedes Benz cars unit is returning to its role as the company’s cash cow.

The luxury carmaker this year might earn twice as much as it previously forecast from the division after lively demand for the limousines in the first three months bolstered its confidence in a recovering market.

Apr 13, 2010

Nuclear ambitions pose company risk, public costs

FRANKFURT (Reuters) – European investors and consumers take note: plans by power companies to cut carbon emissions with a new range of nuclear power stations are a big gamble for companies and joe public will have to foot the bill.

Britain, Italy and Finland plan to decide this year on strategies to rebuild their collection of nuclear reactors, while Sweden will decide after its general election whether to allow new nuclear power plants.