Friday, November 18, 2011

Did you buy British Gas shares when it was privatized - a much better investment than BP in our opinion

Anyone who spent £135 on 100 shares in British Gas at privatisation would now own 100 shares in Centrica (current value about £294), 84 in BG (£1,123) and 31 in National Grid (£199). So their holding would now be worth a total of £1,616.

All three companies are seen as solid businesses. Centrica's British Gas retail arm has been raising prices to maintain margins; BG has some highly regarded assets in Brazil; and National Grid is a reliable dividend payer.

Centrica and BG could soon be reunited, according to recent stock market rumours. China's Sinopec was said to have teamed up with Centrica to launch a £20-a-share offer for BG.

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