LONDON - Britain's fifth biggest energy group Scottish Power today confirmed that it had noted the interest expressed by the German utility firm E.ON, but had not received any offer so far. E.ON had revealed yesterday that it was considering an £11 billion all-cash bid for the Glasgow-based company.
In a statement, the German company said, "No approach has been made to the board of Scottish Power and there can be no assurance that a transaction will be forthcoming. Any offer, if made, is likely to be solely in cash." Meanwhile, Scottish Power has embarked on a massive corporate restructuring campaign that is being seen as a move to make itself immune to any approaches for an outright takeover.
To this effect the company made a statement declaring, “The direct focus of the management will now be on delivering to our shareholders the benefits of further operating improvements, our £4.5 billion ($8.3billion) investment programme, and seizing the opportunities for further sustainable growth." Shares rose by 2.2 percent as the news of the German interest spread. The company quickly sought to quell the feeling that it was a done deal by issuing a statement, "Scottish Power confirms that no approach has been made by E.ON. Any further announcement will be made if and when appropriate."
Scottish Power chief executive Ian Russell said that as a result of the changes instituted by the sale of its American arm, PacifiCorp, the group was well on the way to save £60 million a year, "Once we had made the strategic decision to sell PacifiCorp, which changes significantly the shape and scale of the group, it was necessary to review our management, operating and cost structures for the continuing businesses," he observed.
E.ON already has a significant presence in the UK market thanks to its acquisition of Powergen.
Posted
on : Wed, 07 Sep 2005 09:05 GMT | Business News
By : Rob Davis
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