Economy

Fortum launches $9.5B bid for Uniper after securing E.ON stake

Fortum launches $9.5B bid for Uniper after securing E.ON stake”

Finnish power utility Fortum is to launch an €8 billion (£7bn) takeover offer for E.ON's Uniper.

Fortum said it signed a deal with E.ON to acquire about 46 percent share of Uniper stock.

The benchmark DAX was up 60 points or 0.49 percent at 12,666 in late opening deals after rising 0.1 percent on Tuesday.

Germany's second largest energy company has been seeking a buyer for its Uniper stake ever since it spun off its traditional gas- and coal-fired power stations in 2016.

Uniper operates around 38 gigawatts of power plants in Europe and Russian Federation and had sales of around 67 billion euros in 2016, compared with Fortum's revenue of 3.6 billion euros the same year.

The agreement also includes a clause that if E.ON does not tender its stake, then the Finnish firm will be entitled to divest any shares of Uniper it had purchased in connection with the bigger takeover offer to the German firm. "We are totally satisfied with the E.ON stake, we are not targeting a control or a merger".

Lundmark regretted that he didn't have time to discuss with Uniper before media reports on the deal forced Fortum and E.ON to go public with it last week.

Last week, Uniper had rejected Fortum's takeover offer, terming it as unsolicited with its CEO Klaus Schäfer stating that it did not align with the company's strategy.

"I understand him (Schaefer) very well".

"We are not hostile at all".

Lundmark said Fortum is not planning to conquer Uniper.

Uniper published a press release after the news, saying its management board would analyse and assess the offer.

However, based on their offer to all shareholders, the ownership by Fortum may exceed 50 percent of Uniper.

State-controlled Fortum is focused on carbon-free power generation, mainly in the Nordic region and Russian Federation, and has been looking for a deal since selling its power distribution grids for 9.3 billion euros in 2014 and 2015.



Like this

Latest


27 September 2017
West Ham and Tottenham charged by FA over players' clash
Ayew's caution came a moment before for a bad tackle on Ben Davies as West Ham tried to force an equaliser. Spurs won the Premier League match 3-2 but nearly squandered a three-goal lead.

27 September 2017
Did President Trump Blame Puerto Rico for Its Hurricane Disaster?
Almost all of Puerto Rico lost power after the hurricane, and residents continue to struggle in search of proper food and water. Many people across the United States are frantically trying to get information about loved ones living in Puerto Rico.

27 September 2017
The Cheesecake Factory's (CAKE) "Buy" Rating Reaffirmed at Maxim Group
The rating was initiated by Maxim Group on Tuesday, February 9 with "Buy". 9/7/2017-Jefferies Group LLC Reiterated Rating of Hold. The market capitalization (Stock Price Multiply by Total Number of Outstanding Shares) for the company is reported at $1.94B.

27 September 2017
Bloomin Brands Inc (NASDAQ:BLMN): Institutional Investors Are Worried
The restaurant operator reported $0.28 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.28. It is negative, as 37 investors sold BIG shares while 101 reduced holdings. 110 funds opened positions while 462 raised stakes.

27 September 2017
Apple, Google, Microsoft named three most valuable brands of 2017
Other important names in mobile tech include Intel (number 15) with a value of $39.5 billion, up 7% from past year . Samsung Electronics' brand value was estimated at $23.4 billion in 2011, with its ranking standing at 17th place.

27 September 2017
Diamond Offshore Drilling, Inc. (DO) Receives $14.95 Consensus Target Price from Analysts
Diamond Offshore Drilling, Inc ., launched on April 12, 1989, provides contract drilling services to the energy industry. The stock of Diamond Offshore Drilling Inc (NYSE:DO) earned "Sell" rating by Citigroup on Tuesday, October 20.

27 September 2017
Kapil Dev's 1983 Cricket World Cup win gets a Bollywood biopic
Kabir Khan , the man to direct the film, claims he couldn't imagine anyone else other than Ranveer in the capacity of Kapil Dev . The final was played between India and West Indies at the Lord's Cricket Ground in London on June 25.

27 September 2017
Alaska Air Group's (NYSE:ALK) Overweight Rating Reiterated at Morgan Stanley
Cowen & Co downgraded Alaska Air Group , Inc. (NYSE:ALK) has "In-Line" rating given on Friday, September 23 by Imperial Capital. CIBC Asset Management Inc lifted its holdings in shares of Alaska Air Group by 0.4% during the 2nd quarter. (NYSE:ALK).

27 September 2017
(NYSE:NWL) and Freeport-McMoRan Inc. (NYSE:FCX)
Looking at a shorter time period, shares have been seen -23.42% away from the 50 day high and 1.52% off the 50 day low price. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.

27 September 2017
Ukraine: 30000 evacuated over munitions depot fire
The national police said more than 30,000 people had been evacuated from areas immediately surrounding the military site. Immediate reports mentioned no fatalities and only two minor injuries from the blasts.