Friday, January 29, 2016

Gamesa “discusses strategic options” regarding agreement with Siemens – Yahoo Finance Spain

MADRID (Reuters) – The turbine manufacturer Gamesa said Friday at a news about a possible offer saying that Siemens regularly discussed the “various strategic opportunities” , but added that it has not taken any decision.

The ElConfidencial newspaper reported on Friday that Siemens had begun talks with Iberdrola, main shareholder of Gamesa, to perform an operation that could include a takeover bid value.

For the operation, the report said, Siemens has hired Deutsche Bank as investment bank.

Deutsche Bank and Iberdrola no comment.

The news fired the price of Gamesa to 21 percent, bringing its capitalization by more than 4,800 million euros. Then he relaxed to 16 percent up to 1214 local time. Siemens soared 0.12 percent on the German stock market.

Gamesa, owned 19.7 percent by Iberdrola, has undergone a profound restructuring process has recently increased its capitalization by 17 in three . and a half years and has placed the company in the crosshairs of possible corporate operations

“As a global leader in the offshore market, Siemens is behind Vestas and GE – its two biggest competitors – in onshore wind . Gamesa add some diversification in China, India and Brazil. Given the history of Siemens managing your own business wind up date (problems of quality and execution) we would like to see some compelling points of the potential of a new integrated company ” Barclays said in a note to clients.

In recent months, the renewable energy sector has experienced a flurry of activity as the purchase by the German group Nordex wind subsidiary of Acciona, Acciona Windpower .

The companies seek to gain size in an increasingly global market and more powerful for the development of offshore wind, you need larger generators and industrial development increased investments are needed.

The role of IBERDROLA, KEY

Any operation with Gamesa have to go through an agreement with Iberdrola, historical shareholder group with strong industrial links and occupying three of 11 board seats.

Gamesa Iberdrola was valued on its books, according to its latest available annual accounts (2014) to 533 million euros. At current market prices, the value of this investment is around 960 million euros.

Electric has resolved its debt problems in recent years and has channeled their accounts, so no need to sell the participation at an amount that is also low relative to its market capitalization of 41,600 million euros, although juicy gains he would jump.

In addition, we must take into account the strong political ties between the two companies, based in the Basque Country and which represent a significant proportion of tax revenue in the region

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