By PAUL PANCKHURST
American energy giant Edison Mission Energy says it will sell "some or all" of its international operations - intensifying speculation about its $1.5 billion stake in Contact Energy.
But it looks as though the pressure is off the US company in terms of raising cash immediately.
In a quarterly
filing with the Securities and Exchange Commission, Edison said the subsidiary that owns its international operations had last week secured a commitment letter for a US$700 million ($1.1 billion) loan.
This was "intended to provide bridge financing to asset sales, including the sale of some or all of its international operations, depending upon, among other things, market prices".
That puts the focus back on Edison's 51 per cent stake in Contact.
The company's representatives in Australia refuse to comment on market speculation.
Analysts hope a conference call at 4.30am today for Edison International investors and analysts will shed more light on the attitude towards the New Zealand stake.
The US$700 million loan from Citigroup, Credit Suisse First Boston, J.P. Morgan Chase Bank and Lehman Brothers would largely be used to help subsidiary Edison Mission Midwest Holdings meet a December 11 deadline for a debt repayment.
It would also be used to repay the debt of an overseas subsidiary.
Edison Mission's credit rating downgrades and debt mountain have kept sharebrokers speculating about the Contact stake.
Contact's share price is high, as is the New Zealand dollar against the US dollar.
"If you were ever going to do it, you would probably be thinking about it now," one broker said yesterday.
Contact shares traded as high as $5.30 yesterday before closing at $5.23, a rise of 8c.
