View from City Road: Takeover time looms for utilities
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Apres Stephen Littlechild, le deluge. Investment bankers and analysts are gearing up for the merger binge of the year. Not since last year's wave of takeover activity in the television sector has there been such an opportunity to make hay.
Next March, the golden share that prevents bids for regional electricity companies will cease to exist. Professor Littlechild's cavalier review of charges has removed one of the last obstacles. With profit and dividend prospects set fair, the RECs look highly attractive takeover propositions.
Those that don't engage in defensive cost-cutting mergers among themselves will be gobbled up. The opportunity to buy into cash-generative monopolies such as the RECs comes once in a blue moon. Accomplished cost-cutters such as Hanson are looking long and hard, with the only real concern now the possibility that Labour will get in and take it all away from them again.
Water companies also lose their golden share status shortly; a similar splurge can be expected there. Already the more adventurous fund managers are building big positions in expectation of the fun. Who's going to bid for whom looks like becoming the market guessing game of the moment.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments