Newspaper article THE JOURNAL RECORD

Five Companies Vie for Valero Energy's Natural Gas Business

Newspaper article THE JOURNAL RECORD

Five Companies Vie for Valero Energy's Natural Gas Business

Article excerpt

SAN ANTONIO -- Valero Energy Corp. said five energy and utility companies will submit bids to buy its natural gas business, valued at about $1.5 billion.

Enron Corp., Dupont Co.'s Conoco Inc., Pacific Gas & Electric Co., Cinergy Corp. and Entergy Corp. will be allowed to review confidential financial data on Valero in order to prepare final proposals, said Valero spokesman Keith Booke.

Sale of the natural gas business is part of Valero's plan to spin off its refining and marketing business to shareholders as a new company that will retain the Valero name. Under the plan, first announced in November, Valero shareholders also would receive stock in the company that acquires its natural gas assets. The five companies were pared from about 25 that initially expressed interest in buying Valero's gas business, Booke said. "In my mind, Enron and Conoco would make the most logistical sense, but none of them are really off the wall," said John Parry, an analyst at John S. Herold Inc. Valero expects to receive final proposals later this month and to announce an agreement with a buyer in February. "Overall, we're very pleased and encouraged with the process to date," Booke said. "We remain very confident we will be able to" complete a transaction. Valero decided to pursue a sale now, before a spate of similar transactions narrows the field of potential suitors. The company believes separating the refining and marketing businesses from the gas businesses will allow each to be valued more fairly. Three of the finalists -- Entergy, Cinergy and Pacific Gas & Electric -- are utilities, while Enron is in the process of acquiring Portland General Corp., parent of Portland General Electric. Enron is involved in natural gas transportation and gas and electric marketing and owns power plants outside of the U.S. Conoco is the Houston-based oil and gas company of DuPont. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.