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Mr. Fourtou's predecessor, Jean-Marie Messier, transformed what was once known as Générale des Eaux into Vivendi, a diversified utility and media business, but ran up huge debts in the process.
DOMINION RESOURCES INC., Richmond, Va., a diversified utility holding company, said its telecommunications unit, Dominion Telecom, agreed to pay $41.1 million to use 6,000 miles of fiber optic lines of the Williams Communications Group, Tulsa, Okla., to expand its network in the northeastern United States.
Among the large industry groups (independent power and water combine to account for just five of the S&P 1500 Index's 71 utilities), the natural gas and diversified utility indexes have delivered the best returns over the last year.
To examine whether there is a synergy effect of corporate diversification in the industry, we compare electricity-specialized firms with diversified utility firms in terms of their financial performance and corporate value.
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These proposed mergers, however, differ from those experienced in past decades since they are motivated by diversifying utility operations to address a number of risks associated with changing energy markets and policy.
LAST year, Strong switched its no-load American Utilities fund to the Strong Dividend Income fund so it could diversify beyond utility companies.
Coupling this screening strategy to less attenuated viruses will likely diversify its utility among the various solid malignancies as well as enhance the therapeutic component.
Copley Fund, for example, diversified beyond simple utilities, though it had about 60% of its assets in them or telecommunications stocks in October 2003.
The AES Corp. is diversified power generation and utility company.
This Florida-based electric utility has diversified nationally and is a major player in green energy projects.
So, time and again, the utilities have diversified into loosely related activities, claiming to have discovered money-making synergies only to divest again, disappointed, a few years later.RWE, Germany's second-largest utility, thinks that it has found a cure for this old ailment: transforming itself into an international multi-utility, supplying electricity, gas and water.
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