Few traders would dispute that Wednesday was a classic day forwanting to buy early and sell late. Sources reported prices risingsteadily during trading at virtually every point, with the highends of ranges occurring late in the morning. Increases of a dimeor more dominated the market, and Northeast citygates were seeingthe high side of $3 again in some deals.
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Elf Says Its Counteroffer Beats TotalFina’s
Paris-based Elf Aquitaine submitted a counteroffer forTotalFina. Elf’s proposal would create two separate pure-play oiland gas and chemicals groups and annual pre-tax synergies of 2.5billion euros within three years of the combination. The dealoffers three Elf shares and 190 euros in cash for every five sharesin TotalFina, representing a premium of 10% to TotalFina’s closingprice on Friday July 16 (ex dividend). The transaction will beaccounted for under US GAAP using purchase accounting.
Monterrey Pipeline Now in Open Season
KN Energy began an open season for its a 108-mile, 24-inchMonterrey Pipeline that would connect its MidCon Texas intrastatepipeline in Starr County, TX, to Monterrey, Mexico. The open seasonbegan yesterday and runs through 5 p.m. CDT July 30.
GRI: Utilities Trim Costs in Competitive Era
Recent declines in natural gas bills would have been evengreater if it hadn’t been for one-time LDC restructuring charges,according to a Gas Research Institute study. Still LDCs have cutnon-gas costs substantially.
Transportation Notes
Mojave Pipeline reversed an earlier bulletin board posting (see Daily GPI, June 16), emphasizing that itwould “not” shut in part of its West Lateral Thursday and cause theshut-ins of “17Z”-labeled interconnects with Chevron, Mobil, Shell andTexaco. However, Mojave said, a maintenance shut-in of the Oxy 17Zinterconnect was to proceed as scheduled Thursday and today.
Strong Gains Bring Some Points Back to Index
It didn’t take long for those predicting that May swing priceswould remain under index levels all month to have to eat theirwords. Not all points matched indexes again Tuesday, but quite afew did in a general show of strength by the cash market, and therest were coming close. Most gains were in the vicinity of a dime,but those in the Rockies and California markets tended to be closerto a nickel or so.
FPL Energy Closes on Maine Power Plants
After losing a court battle that would have nullified theacquisition, FPL Energy Inc. announced last week it closed thedeal to obtain Central Maine Power Co.’s (CMP) non-nucleargenerating assets. The transaction is expected to be completed inApril.
FPL Closes on Maine Power Plants
After losing a court battle that would have nullified theacquisition, FPL Energy Inc. announced Thursday it closed the dealto obtain Central Maine Power Co.’s (CMP) non-nuclear generatingassets. The transaction is expected to be completed inApril.
UGI to Shed Utility As Part of Merger Deal
The merger bandwagon continued last week as UGI Corp. announceda proposed deal that would join its retail propane marketingbusiness with the largest marketer and distributor of printing andimaging paper and supply systems. UGI will sell UGI Utilities aspart of the transaction, making it the first company “in recenttimes” to completely shed itself of its utility business. Thecompany says it can take such a dramatic step because, unlike otherutilities, it has another “very distinct” business (propane) thataccounts for about two-thirds of its annual revenues.
Coastal to Cut 200-300 Staff Positions
Despite record earnings last year, Coastal Corp. CEO David A.Arledge admitted in January that 1999 would be a “challengingyear.” Coastal began to prepare for that challenge last week bystarting a corporate belt-tightening program that will include awork-force reduction.