Paris and London markets yesterday applauded the announcement of the takeover of British Energy (BE) by EDF. The action of the French electrician increased by 3.21, to 51,76 euros, while its British counterpart was 5.66 to 765 pence, to be a little lower than the price of the project of OPA to 774 pence per share.
Analysts initially welcomed the fact that this announcement finally put an end to more than six months of uncertainty and twists and turns... It is indeed on 17 March that the number one British nuclear power had indicated for the first time be engaged in talks "that may or may not lead to an offer for the acquisition of the company."
The reaction of the stock exchange is also explained by the fact that the agreement avoids crazy outbid. The final price is only 1 higher than that proposed in July. "The French have set a ceiling to their proposal." "It is a reason of satisfaction for investors," said one London analyst. Remains that the price of more than 15 billion euros paid is considered very high by some. EDF offers a bonus of 35 on 14 March, just before the first announcement, while nuclear power plants of British Energy appear quite dilapidated, and that the British group has accused a strong decrease in its last quarterly net profit. According to the course of the past, British Energy is bought 27 times its net profit 2008-2009 (closed in March), while EDF is valued on the stock exchange only 19 times its profit expected for this year. A large gap...
On the 21 analysts who follow the hex group surveyed by Bloomberg, 19 recommended however to purchase, one keep, and a final sell. "It should be noted the feedback that will not fail to offer the miniparc of four PRT stations to be built on English soil." "This will be the first experiment of a complete family of plants from France, and will provide a compelling experience for EDF in his conquest of the export markets after Flamanville," said CM - CIC Securities.
But, beyond the good home yesterday for the operation, the stock market remains cautious for EDF. Yesterday, the action of the Habs champion still had a fall by 36.5 since January 1, while the CAC 40 index lost only 27 at the same time. A decline in the electrician that contrasts strongly with the flight deck of the title in 2006 and 2007.
Not a sufficient catalyst
During these two years, its course was multiplied by 3, the price of the introduction of 32 euros in late November 2005. Since the beginning of the year, the course has been on the other hand the decline of stock markets in General, fears about the cost of acquisition of British Energy, but also the announcement that the growth of the gross for EDF operating surplus would be low. The reasons: rising raw materials, energy and equipment, and the pursuit of a heavy investment program. The first half of this year has been difficult, with a decline of 12 of net profit and the confirmation of a probable decline on the year.
The purchase of British Energy does not appear as a sufficient catalyst to permanently straighten the course, as the current rates remain regulated and capped in France, an issue key in the eyes of investors.