AGL 38.15 Decreased By ▼ -1.43 (-3.61%)
AIRLINK 125.07 Decreased By ▼ -6.15 (-4.69%)
BOP 6.85 Increased By ▲ 0.04 (0.59%)
CNERGY 4.45 Decreased By ▼ -0.26 (-5.52%)
DCL 7.91 Decreased By ▼ -0.53 (-6.28%)
DFML 37.34 Decreased By ▼ -4.13 (-9.96%)
DGKC 77.77 Decreased By ▼ -4.32 (-5.26%)
FCCL 30.58 Decreased By ▼ -2.52 (-7.61%)
FFBL 68.86 Decreased By ▼ -4.01 (-5.5%)
FFL 11.86 Decreased By ▼ -0.40 (-3.26%)
HUBC 104.50 Decreased By ▼ -6.24 (-5.63%)
HUMNL 13.49 Decreased By ▼ -1.02 (-7.03%)
KEL 4.65 Decreased By ▼ -0.54 (-10.4%)
KOSM 7.17 Decreased By ▼ -0.44 (-5.78%)
MLCF 36.44 Decreased By ▼ -2.46 (-6.32%)
NBP 65.92 Increased By ▲ 1.91 (2.98%)
OGDC 179.53 Decreased By ▼ -13.29 (-6.89%)
PAEL 24.43 Decreased By ▼ -1.25 (-4.87%)
PIBTL 7.15 Decreased By ▼ -0.19 (-2.59%)
PPL 143.70 Decreased By ▼ -10.37 (-6.73%)
PRL 24.32 Decreased By ▼ -1.51 (-5.85%)
PTC 16.40 Decreased By ▼ -1.41 (-7.92%)
SEARL 78.57 Decreased By ▼ -3.73 (-4.53%)
TELE 7.22 Decreased By ▼ -0.54 (-6.96%)
TOMCL 31.97 Decreased By ▼ -1.49 (-4.45%)
TPLP 8.13 Decreased By ▼ -0.36 (-4.24%)
TREET 16.13 Decreased By ▼ -0.49 (-2.95%)
TRG 54.66 Decreased By ▼ -2.74 (-4.77%)
UNITY 27.50 Decreased By ▼ -0.01 (-0.04%)
WTL 1.29 Decreased By ▼ -0.08 (-5.84%)
BR100 10,089 Decreased By -415.2 (-3.95%)
BR30 29,509 Decreased By -1717.6 (-5.5%)
KSE100 94,574 Decreased By -3505.6 (-3.57%)
KSE30 29,445 Decreased By -1113.9 (-3.65%)

Germany will not let a financial investor buy RAG, a government official said on Friday, even though Cerberus Capital Management is ready to pay up to 8 billion euros ($10.65 billion) for the conglomerate.
The government official, who declined to be named, said RAG would float its non-coal businesses on the stock exchange as planned in a complicated transaction that will hive off liabilities for its loss-making coal mining operations.
"The (Cerberus) offer is pointless because a foundation for a share sale has been established and the state of North-Rhine Westphalia has committed itself to the sale," a separate source familiar with the situation said.
Another source familiar with the situation had said on Thursday that buyout firm Cerberus was bidding 8 billion euros for the RAG energy, property and chemical assets that are set to list next year in one of Germany's biggest post-war flotations.
In Duesseldorf, a spokesman for North Rhine-Westphalia state premier Juergen Ruettgers said German politicians knew of Cerberus's interest when they approved floating RAG. "Aware of the offer, we decided to make RAG an integrated, publicly listed company," the spokesman said. "This is the only path being taken."
The RAG listing has been a political hot potato because it paves the way for Germany to exit heavily subsidised mining of hard coal. Federal, state, company and union officials finally gave the green light on Wednesday evening.
Cerberus - which last month agreed to buy a majority stake in US carmaker Chrysler from DaimlerChrysler for $7.4 billion - has declined to comment on the matter.
RAG is owned by German utilities E.ON AG and RWE AG, along with steelmakers ThyssenKrupp AG and Arcelor Mittal. But all four companies have already committed themselves to selling their stakes for a symbolic one euro to rid themselves of RAG's potentially crippling liabilities from coal mining.
The stakes will go to a state-controlled foundation to be established by month's end, which would take over responsibility for the coal-mining pension and environmental liabilities. Proceeds from the flotation would finance the liabilities.
The flotation is expected to raise at least 5 billion euros, but would take place in tranches and let the foundation keep a stake in the listed company, thus taking in dividends that would help finance miners' pensions and environmental damage.

Copyright Reuters, 2007

Comments

Comments are closed.