Rebuffed by Talisman, GDF Suez may be eyeing AES, Duke, Enel assets


Talisman Energy (TLM +0.8%) reportedly rejected a $17B takeover offer from French utility GDF Suez (GDFZY, GDSZF), as the two sides failed to agree on terms in December and have not been in contact since.

However, U.S.-based utility AES Corp. (AES +0.4%) may still be in GDF’s sights given its footprint in places such as Colombia, where GDF does not operate: GDF's Chinese partner, CIC, is an 8% shareholder in AES, which could ease financing and help get support for a deal.

Beyond TLM and AES, sources say GDF also could look at smaller portfolios of assets in Latin America worth $5B-$10B, such as assets held by Duke Energy (DUK +0.9%) and Italy's Enel (ENLAY).

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Comments (1)
  • Uncle Pie
    , contributor
    Comments (4322) | Send Message
     
    Reuters reported this morning that GDF Suez CEO Gerard Mestrallet categorically denied that his company has made a bid for Talisman, and went on to say that they are not shopping for a large acquisition.
    The Talisman rumor is hardly credible, given that GDF Suez is in a debt-reduction mode right now, and is struggling to continue its high dividend payout, which currently exceeds the company's earnings. It's also not credible that GDF Suez would buy a Canadian E&P company, with various operations scattered around. The last company GDF Suez bought was Britain's International Power, which operates independent electric generating facilities around the world. Whoever is starting these rumors ought to take a few minutes to learn something about the companies they are hoaxing...they might be able to come up with a more credible story.
    21 Jan 2014, 12:55 PM Reply Like
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