Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Tunica Albuginea who wrote (12369)	7/23/1999 2:29:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

Rob and Tunica -- I agree with you both. Making the quarter is a make-or-break situation for management. The quarter ends a week from today and I suspect the stock will send strong messages by the end of next week. Here's a release from National Grid, the UK utility that spun off Energis a while back: <<< July 23, 1999 12:51 INTERVIEW-Nat. Grid eyes foreign markets By Sabine Bub COVENTRY, England, July 23 (Reuters) - British power company National Grid Group Plc is looking for international expansion opportunities for its electricity transmission and telecom start-up businesses, Chief Executive David Jones said on Friday. "We see the U.S. as being a big market in which we intend to have further action," Jones told Reuters, referring to power transmission and distribution markets. Jones said he saw opportunities to expand National Grid's telecoms networks and services businesses in Asia and Eastern Europe. National Grid announced in December that it had signed an agreement to take over U.S. transmission and distribution group New England Electricity System (NEES) . Even before the deal was completed, NEES in February agreed to acquire its neighbour, Eastern Utilities Associates . "The savings coming from putting those two companies together are going to be $35 million a year, which is pretty much 50 percent of the cost base," Jones said. "We are looking for other opportunities in the U.S.," said Jones, adding that the company would not pursue any mergers before the two takeovers were approved by U.S. regulators. He said he expects the mergers to be completed in December or January. Analysts say National Grid needs to find new income streams. Pre-tax profit before exceptional items fell four percent to 445.4 million pounds in the year to March 31 1999, despite cost-saving efforts. Regulatory price restrictions have reduced revenue from the company's core transmissions business in Britain. "The UK transmission business is clearly not going toward any material expansion...therefore if we are going to be growing shareholder value then that's got to be internationally," Jones said. Another area of international expansion is telecoms, which Jones described as being "cash absorbative, but of course very value creative." National Grid owns a 50 percent interest in a Brazil telecoms venture with France Telecom and Sprint Corp of the U.S. , but sees other opportunities around the world. "We have got a potential list of other suitable countries which are in a variety of places in the world, but we are not in the business of mentioning the names," Jones said. Jones also said there was a possibility that British telecoms group Energis Plc , in which National Grid holds a 48.3 percent stake, could be taken over by a telecoms giant. "Cleary it is quite possible that one of the exits for Energis would be that one of the major European or one of the major American telecom groupings sees Energis as a part of their global jigsaw," he said. Recent market rumors saw Energis as a potential take-over target of Deutsche Telekom . But so far National Grid was very pleased with the value Energis was creating at the stock market, Jones added. "We are not under any pressure to do anything." National Grid has sold 1.2 billion pounds worth of its original 100 percent interest in Energis over the past year, reducing its stake to 48.3 percent. The company plans to sell its remaining interest within the next three to five years, Jones said. >>>>