The Financial Times is distinctly unimpressed by Gazprom’s posturing in the British energy market:
For all its macho posturing, all Gazprom has managed to acquire so far in the UK is Pennine Natural Gas, in Wilmslow, Cheshire, which has about 600 customers. Pennine employs just 12 people in the UK - hardly the path to world domination.
While the Russians have been teasing their British counterparts, the Spanish have managed to snap up Scottish Power and the Malaysians have built a stake in Centrica.
But if Gazprom wants to be taken seriously as a western shareholder-friendly company then it must put its money where its mouth is and launch a takeover bid.
Ouch.
{ 4 comments }
VictorT 06.19.07 at 1:03 pm
Your link is broken. It links to wikipedia (http://en.wikipedia.org/wiki/HTTP).
V
Andy 06.19.07 at 1:13 pm
Thanks Viktor - the link’s fixed now.
Aleks 06.19.07 at 6:27 pm
Well, taking the opposite view, it could infact be a cunning plan (excluding potatoes, pies or other such imagery). Rather than risking another blow up with the british government via a full on take-over bid of Centrica, maybe Gazprom is using this small company as a ‘beach head’, i.e. it will become a mini-Gazprom /british based vehicle which will be used to launch further take-overs with Gazprom cash.
I think that Gazprom wants a fully british, and most importantly established company. After all, with all the ex-KGB apparently in control, why the caution? Could it be that it is more sensible to dip one’s toes into apparently shark infested waters to see what the reaction will be (i.e. from the UK authorities).
The FT article comes across as a bit of a stupid rant, the author just thumbing her nose at the Russians. Not something I would expect to see in the FT (how did it get by the ed?).
We might well be in for some suprises. Definately one to keep an eye on.
Thanks for the heads up.
poemless 06.19.07 at 6:56 pm
I might be far out in left field on this, but it seems to me that this is just another example of the no-win treatment of Russia in the “Western” Press. It’s rhetoric. And some fancy framing acrobatics in order to accommodate the facts (Russia is not taking over our Energy suppliers) and the party line (Russia is going to take over our energy suppliers). This way they can be a threat and weak. Just what we want in a foe.
Look at the following excerpts they managed to fit into the same piece:
“Gazprom and Vladimir Putin are clearly obsessed with taking control of the switch that turns the UK’s lights on and off.”
“when it [Gazprom] finally does admit its interest in a UK energy company and tries to arrange talks, it could find no one is willing to speak anymore.”
So they are “clearly obsessed” but they have not actually admitted it yet. “Taking control of the switch that turns the UK’s lights on and off” smacks of cold war propaganda (are their Bolsheviks in your bathroom?), emphasizing the personal threat to citizens, but assuring us they really don’t have the power to do it. Who should be worried here? Who’s making the real threat in this article? Are we talking about business or politics now?
Gazprom is probably playing a “twisted psychological game”, but it looks like the FT is doing the same thing…
Sceptical?
Ok, if Gazprom actually began launching takeovers of large British Energy suppliers and “controlling” the switches that light up the homes of England, would the FT congratulate them on their strong showing, for their financial prowess and acumen? No, the choices are “all talk, no action” or “action which threatens the very security of our nation.”
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