EDF to be nationalised

[niemeyjt]

Not sure it is in line with EU rules, but . . .

France's EDF to be fully nationalised -prime minister

PARIS, July 6 (Reuters) - The French government plans to fully nationalise EDF (EDF.PA), Prime Minister Elisabeth Borne announced on Wednesday, sending shares in the debt-laden power utility sharply higher.

"I confirm to you today that the state intends to control 100% of EDF's capital", Borne said in her policy speech in the lower house of parliament as she set out her minority's government priorities

source: https://www.reuters.com/world/europe/fr ... 022-07-06/

[MAD87]

So where's the money coming from? The shares are up 14.6% just now.

[niemeyjt]

So where's the money coming from? The shares are up 14.6% just now.

Well, I think they are going to cut a branch off the money tree, stick it in the ground so it takes root et voila, two money trees.

[tagh]

They are €40,000,000,000 in debt and cant borrow except at high rates, so if they are renationalised they will have the backing of the French money printing presses.
Pity though.

[rabbit]

I feel this will be the way for most energy utilities in Europe. Too many private energy companies are going bust and the economy cannot afford for the lights to go out. I always thought privatising public transport, water and energy an unwise move

[Hotrodder]

I've always thought the opposite. Essential utilities and services to be run for the general good rather than the profits of the rich.

[MAD87]

Essential utilities and services to be run for the general good rather than the profits of the rich.

Most big quoted companies are owned by (i) institutions which, inter alia, invest gazillions for pension funds, insurers, governments, etc. and (ii) small shareholders, often elderly, people like me! I can assure you I'm not and have never been rich, but I've been investing in shares for 50 years, currently to boost my pensions.

EDF has always been poorly managed - not helped by governmental interference and union brakes on moderrnisation. I translated the Chairman's reports for a few years and it was clear then that it needed a good shake-up. The unions take half a billion yo-yos each year for their châteaux, holidays and all sorts of other benefits the rest of us could only dream of (I get that from other sources in the sector).

Nothing much will change, imo, as govts have been majority shareholders in utility companies here since Clovis. Oh and top management (as in all sorts of big cos.) is appointed by the government of the day, often as a political reward or a favour to an old ENA chum. Very Etonesque.