More corporate under-priced aquisitions? (and my prediction for Tony Blair’s post politics consultancy

Westinghouse is up for sale…

Having argued for years about “sustainable” power generation, and foolishly relied on piping in energy from Russian, New Labour are now deciding that nuclear power might be a good idea after all. That is correct. Modern designs are a safe and necessary step to real sustainability in electric power.

So, congratulations on a sensible shift but… what does that mean?

It means that owning Westinghouse is going to make someone a lot of money quite shortly. Westinghouse make nuclear reactors and were purchased by BNFL (UK government nuclear fuel company) for 1.1 billion in 1999.

Now, just when the west is turning massively to nuclear, lo and behold: this about-to-inflate asset is up for sale into private hands, possibly Toshiba. There’s a windfall profit already, but I see a lot more upside for this company, which has modern designs and solid experience in a niche market experiencing a big upsurge in demand.

Prediction 1: This is a great stock to get into. The government will sell it too cheaply.

Prediction 2: More of BNFL’s assets (11 power stations, 4 active) may go under the hammer prior to the OK-ing of nuclear development. Just the prior energy and environment consents will be worth a fortune.

Prediction 3: New Labour ministers will turn up consulting for Westinghouse or their new owners as they seek to negotiate the regulatory hurdles of building new reactors in the UK.

Could be wrong, but there you have it.


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