23 December 2002 13:08
Analysts welcome ENI shopping spree (E lo shopping non pesera sui debiti)
Analysts have welcomed the acquisition of a 50 per cent stake in Union Fenosa Gas, the Spanish gas distribution
group, by Italian oil group ENI. Caboto SIM has raised its rating from "hold" to "outperformer". UBS
Warburg and Morgan Stanley have confirmed their rating as "buy". They believe that the acquisition will
generate important synergies. Caboto's fair price for ENI's shares has increased from 16.3 euros to 17.34
euros.
The EU competition authority has approved the acquisition of German gas distribution group GVS by a joint venture
made up by ENI and German group ENBW. ENI has also bought the Norwegian oil activities of Fortum and French group
Bouygues Offshore through its controlled company Saipem. In January ENI will start work on Blue Stream, a 376 km gas
pipeline which will cross the Black sea, connecting the Russian and Turkish coasts. ENI is also working on a gas
pipeline which will bring natural gas from Libya to Italy. Morgan Stanley believes that in 2003 ENI's debt/equity
ratio will stand at 34 per cent. Caboto estimates that ENI will have net debt of 8.3bn euros in 2003.
Original article by E. Sc.
Abstracted from Il Sole 24 Ore
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