Sempra CEO: Strong Interest In RBS' Stake In Commodities JV
By Cassandra Sweet, Of DOW JONES NEWSWIRES
SAN FRANCISCO -(Dow Jones)- Sempra Energy's (SRE) top executive said Monday
the company has received strong interest from banks and other types of companies
looking at Royal Bank of Scotland's (RBS) 51% stake in the companies'
commodities-trading joint venture.
"The amount of interest we've seen in this [is] really amazing," Sempra Chief
Executive Don Felsinger said, speaking with analysts by telephone. "People
recognize what a valuable franchise we have and everyone wants to be a part of
it."
RBS said last week it will have to sell its share of the commodities business
with Sempra due to requirements tied to its restructuring plan after the U.K.
government injected several billions of dollars to keep the bank afloat.
Sempra's joint venture agreement with RBS gives the San Diego-based company
the right to buy back RBS' share of the commodities unit. But Felsinger said
Sempra is keen to find another partner.
"The objective is to have someone come in and step into [RBS'] position,"
Felsinger said.
RBS needs Sempra's agreement to sell its stake in the commodities business,
said Sempra Chief Financial Officer Mark Snell.
"We can pick a partner that makes sense," he said.
Both men said they were "surprised" by the high level of interest they've
received in RBS' share from banks, "big funds," sovereign wealth funds, oil
companies and other types of companies.
Shares of Sempra, which Monday reported higher third-quarter earnings boosted
by the commodities business, were recently trading 1.6% higher at $51.57.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@
dowjones.com
Order free Annual Report for The Royal Bank of Scotland Grp.
Visit http://djnweurope.ar.wilink.com/?ticker=GB0007547838 or call +44 (0)208
391 6028
(END) Dow Jones Newswires
11-09-091451ET
Copyright (c) 2009 Dow Jones & Company, Inc.
|