REFINING: Citgo Asset Bids at Unsatisfactory Levels
Mar-14 10:16
The highest bid in the US auction for shares of Venezuela-owned Citgo Petroleum assets was $7.3bn – only covering a third of court approved claims according to Reuters sources.
- The highest bid level appears to create an unsatisfactory outcome for creditors or Citgo’s current owners.
- The court may have to revamp the sales process, or consider an alternative being drafted by Venezuela, which would offer creditors a larger payout with proceeds spread over several years, while retaining some of Venezuela's stake in the company.
- The shares for the assts had initially been valued at $13-14bn.
- The assets have drawn interest from ConocoPhillips and conglomerates of Koch amongst others.
- Citgo has been highly profitable in recent years – earning $4.8bn in profits in the last two.
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GILT AUCTION RESULTS: Strong linker auction
Feb-13 10:07
- That was a strong auction for the 10-year gilt linker (the 0.75% Nov-33 linker). The bid-to-cover was broadly in line with last month's auction but we also note that the price of 101.097 is higher than the intraday high by quite some way. The intraday high ahead of the auction had been 101.014 acheived just before the auction cut-off.
- There is no real knock-on effect to conventional (non-linker) gilt prices.
GILT AUCTION RESULTS: 0.75% Nov-33 linker
Feb-13 10:02
| 0.75% Nov-33 linker | Previous | |
| Amount | GBP1.50bln | GBP1.50bln |
| Avg yield | 0.634% | 0.423% |
| Bid-to-cover | 2.97x | 3.04x |
| Avg price | 101.097 | 103.154 |
| Pre-auction mid | 101.009 | 102.843 |
| Previous date | 10-Jan-24 |
MNI: GERMANY FEB ZEW CURRENT CONDITIONS -81.7
Feb-13 10:00
- MNI: GERMANY FEB ZEW CURRENT CONDITIONS -81.7
