Tag Archive 'energy'

Aug 13 2008

Consolidation in EU Energy Markets

High energy prices make companies both rich and greedy… In Western Europe, that boils down to acquisitions.

Last week, Electricite de France (EDF:Paris), who has been courting British Energy (BGY:London), announced it would not up its bid for the owner of most of the U.K.’s nuclear power plants. It was ready to announce an all-cash offer of $23.4 billion on Friday, but apparently, that offer is too low for the institutional investors holding large stakes in British Energy.

EDF isn’t going to let all that money sit around for long, though. With $54 bilion to spend on investments over the next two years, it’s already eyeing up other companies and developments.

Today, EDF increased its stake in Constellation Energy Group (CEG:NYSE) to 9.9%, up from 4.7%. And on Sunday, the company signed agreements to “invest in and operate two new-generation reactors in [China's] southern province of Guangdong.”

In fact, EDF is considering a number of countries and international developments for expansion. From South Africa to Qatar, EDF is looking for ways to secure both energy supplies and customers.

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Aug 11 2008

It’s All About Oil… Of Course.

Conspiracy theorists, meet the Nostradamus of Novels: Tom Clancy.

My colleague and fellow analyst, Christian DeHaemer, and I were reading up on the latest news from the South Ossetia conflict between Russia and Georgia. We were passing articles back and forth, trying to determine what was really at the heart of the matter, and how it would affect the markets.

(Turns out, Russian markets aren’t taking it too wellThe ruble fell 1.6%.)

Then Chris turns to me and asks, “Have you ever heard of Ghost Recon?”

Back in 2001, military science novelist, Tom Clancy designed a video game called Ghost Recon. Here’s the story’s timeline…

The Russian Democratic Union, consisting of Russia, Ukraine, Belarus, and Kazakhstan, is formed in 2007, with the goal of reuniting the former Soviet Union states. Action comes to a head in April 2008, when ultra-nationalists seize total power in Russia and begin invading the Baltics and Georgia. U.S. Special Forces join with rebel factions in Tbilisi, Georgia, but can’t hold back the Russian tide…

Earlier today, in real life, Russian planes flew over the presidential palace in Tbilisi.

This coincidence gave me chills. You can check out the real timeline for the current conflict in this article from Reuters.

The Georgian president, Mikhail Saakashvili, says this conflict, in which Russia is supposedly supporting a separatist faction in Abkazia (an area in South Ossetia), is because Russia wants to control energy routes through the Caucasus.

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