£1,000 lowest stake for generators sale
Monday 06 February 1995
It will also emerge today that the price to the UK public for the first instalment will be 170p for each National Power share and 185p for each share in PowerGen.
The minimum investment figure is higher than in the previous sale of shares in the generators in 1991 and than in the final sale of shares in BT in 1993. At today's launch of the pathfinder prospectus, the Government will disclose that private investors must buy at least 200 shares if they wish to participate in the £4bn sale.
The UK public will buy shares in a package of three National Power shares to two PowerGen, though the partly-paid shares will trade separately.
Private investors will pay less than institutions but the level of discount will not be made clear until the institutional first instalment is announced on 16 February. The Government has already said that extra "incentive" discounts will be given to allUK private investors who register and buy their shares through an approved share shop.
The incentive discount of 25p a share on the institutional price, will be divided into 10p on the second instalment and 15p on the third. The aim is to encourage people to hold on to their shares. The pathfinder will reveal the dividends which the companies are expected to pay this year.
It will also warn of the regulatory threat facing the companies, and the implications of increased competition in the marketplace. The pathfinder has already been delayed for a week because of a threat by the regulator, Offer, that there may be an inquiry into wholesale electricity prices later this year and that a reference to the Monopolies and Mergers Commission cannot be ruled out.
Professor Stephen Littlechild, director-general of Offer, has repeatedly made clear that he is concerned about the powerful position which National Power and PowerGen hold and their ability to influence prices in the electricity trading pool.
Separately, it has emerged that some Conservative MPs are pushing for Trafalgar House's £1.2bn bid for Northern Electric to be referred to the Monopolies Commission.
Three MPs are also understood to have written to the 11 other regional electricity companies, asking for their support in having the hostile bid referred.
However, the management of at least one regional firm, Eastern Electric, has said that there are no grounds for an MMC reference and that the electricity companies must be treated like any other private sector firm.
Michael Heseltine, President of the Board of Trade, has now received advice from the Office of Fair Trading and is considering whether the bid should be referred.
David Morris, chairman of Northern Electric, said his board would not rule out accepting a bid from Trafalgar if it was "at a very much higher level". On BBC2's Money Programme, he said the main criterion for acceptance was shareholder value.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...