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 : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (8419)	9/10/2000 1:32:50 PM
From: elmatador	Respond to of 12823

Franco, meu amigo!!! Utilities down here are subject to the same pressures that their counterparts in the US suffer!! Mainly competition making them search for new revenues somewhere else. An obvious one: Telecom. That's because telecoms have not (yet) passed to their users the savings that new tecnology make possible. A few names: VIVENDI in France ENTEL in Italy RWE in Germany Veba in Germany a slew of others in Sweden want to jump in the gravy train. That not to mention municipalities trying to be City-Carriers.

To: Frank A. Coluccio who wrote (8419)	9/10/2000 1:36:35 PM
From: elmatador	Read Replies (1) \| Respond to of 12823

"...introduction of competition in the Italian electricity sector this year had reduced Enel's captive market by about 9.2 per cent in volume..." Enel expresses strong interest in buying Infostrada By James Blitz in Rome Published: September 8 2000 18:54GMT \| Last Updated: September 9 2000 03:55GMT Enel, Italy's main electricity utility, on Friday expressed strong interest in the idea of its jointly owned telecommunications subsidiary Wind purchasing its Italian fixed-line rival Infostrada. As Enel unveiled a lacklustre set of results for the first half of this year, Franco Tato, Enel's chief executive, said the potential trade sale of Infostrada by Britain's Vodafone was an "opportunity that has to be looked at very carefully". Wind, 56 per cent controlled by Enel and 44 per cent by France Telecom, is one of several groups interested in the E11bn-E14bn ($9.6bn-$12.2bn) sale of Vodafone. The British group is expected to decide in the next few days whether to put the entire company up for sale or float 49 per cent. Mr Tato said the takeover of Infostrada by Wind would bring together two telecoms operators with extensive infrastructure, creating "potential for rationalisation". He said Enel was in a position to raise about L30,000bn (E15.5bn, $13.5bn) to help fund acquisitions such as Infostrada. About two-thirds of this, he said, could be raised by extending Enel's debt-to-equity ration from about 1.1 to 1.5. The remainder would come from the sale by Enel of three generating companies over the next two years. However, Mr Tato would not be drawn on speculation over whether Enel might offer Vodafone a mixture of cash and shares in Wind to purchase Infostrada. Such a move would be politically difficult because Enel and Vodafone, through its Omnitel subsidiary, are separately bidding for upcoming Italian third-generation mobile licences. The Italian government has warned that the owner of one 3G licence cannot have cross-shareholdings with another. Mr Tato's expression of interest in Infostrada came as Enel announced a 14 per cent drop in net income in the first half compared with the same period last year. The fall in income, to E982m, was largely due to the opening up of the Italian electricity market to new competitors this year and the introduction of a 10 per cent cut in electricity tariffs. First-half revenues were marginally lower than analysts' forecasts at E11m. Enel shares closed up 2.5 per cent at E4.55 on the Milan stock exchange. Publication of the results came after markets closed. Mr Tato said the introduction of competition in the Italian electricity sector this year had reduced Enel's captive market by about 9.2 per cent in volume. However, this had been partly offset by afaster-than-expected pace of cost-cutting at Enel.