Energy Group under pressure to name potential bidders

Energy Group, owner of Eastern Electricity, will come under pressure today to confirm whether it is in takeover talks with any US utilities apart from its existing suitor, PacifiCorp. As Michael Harrison reports, a pounds 4bn auction may be in the offing for the company.

PacifiCorp is today expected to ask the Takeover Panel to press for a statement from Energy Group after weekend reports that as many as three other bidders may be eyeing up the business.The potential bidders named include Texas Utilities, the sixth biggest electricity company in the US, Houston Industries, which bid unsuccessfully for Norweb, and Pacific Gas and Electric.

PacifiCorp tabled an agreed pounds 3.6bn offer last July for Energy Group, whose other interests include the US coal producer Peabody. The bid was subsequently referred to the Monopolies and Mergers Commission and then cleared just before Christmas, since when Energy Group has been waiting for a revised offer.

PacifiCorp is set to make a fresh bid once it has received clearance from the US Federal Trade Commission, expected in the next week or so. The FTC has been examining the implications of PacifiCorp acquiring Peabody since the company supplies coal to rival electricity generators on the West Coast.

In a short statement yesterday PacifiCorp said it noted the reports about other parties being interested in Energy Group but could not substantiate whether these were material or not. Apart from Texas Utilities, which is valued at $9bn and has 5.9 million customers, a financial buyer was also rumoured to be interested.

PacifiCorp added that it remained interested in a merger with Energy Group but only on terms that were advantageous to its shareholders.

PacifiCorp's original bid was worth 695p a share. Any revised bid will probably have to be increased to 720p at least, valuing Energy Group at pounds 4bn. The two companies have been playing a cat and mouse game since the MMC gave clearance for a renewed bid, Energy Group arguing that its value has increased since last July and PacifiCorp pointing out that the regulatory outlook for UK electricity companies is tougher than when it first bid.

Seven regional electricity companies are already under US ownership and Energy Group would make it eight. The MMC investigated the financing of PacifiCorp's bid in great detail because of its highly geared nature. The merger would create a group with debts of more than $12bn.

In the end the MMC concluded that existing regulatory controls were sufficient to ring-fence Eastern Electricity.

Arts and Entertainment
TVShow's twee, safe facade smashed by ice cream melting scandal
Life and Style
life
News
Brad Pitt and Angelina Jolie reportedly married in secret on Saturday
peopleSpokesperson for couple confirms they tied the knot on Saturday after almost a decade together
Voices
Pupils educated at schools like Eton (pictured) are far more likely to succeed in politics and the judiciary, the report found
voices
PROMOTED VIDEO
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
News
Actor, model and now record breaker: Jiff the Pomeranian
Video
News
REX/Eye Candy
science
Sport
Alexis Sanchez celebrates after scoring his first goal for Arsenal in the Champions League qualifier against Besiktas
sportChilean's first goal for the club secures place in draw for Champions League group stages
News
i100
News
Down time: an employee of Google uses the slide to get to the canteen
scienceBosses are inventing surprising ways of making us work harder
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Junior Asset Manager

£25000 - £35000 Per Annum: The Green Recruitment Company: Job Title: Junior As...

Investment Analyst

£33000 - £40000 Per Annum Discretionary profit share: The Green Recruitment Co...

Graduate / Trainee Recruitment Consultant

£20000 - £30000 per annum + OTE £45000: SThree: SThree are a global FTSE 250 b...

PMO Analyst - Risk - Banking - London - £350-£400

£350 - £400 per day: Orgtel: PMO Analyst - Risk - Banking - London - £350 - £4...

Day In a Page

Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone
Amazon is buying Twitch for £600m - but why do people want to watch others playing Xbox?

What is the appeal of Twitch?

Amazon is buying the video-game-themed online streaming site for £600m - but why do people want to watch others playing Xbox?
Tip-tapping typewriters, ripe pongs and slides in the office: Bosses are inventing surprising ways of making us work harder

How bosses are making us work harder

As it is revealed that one newspaper office pumps out the sound of typewriters to increase productivity, Gillian Orr explores the other devices designed to motivate staff
Manufacturers are struggling to keep up with the resurgence in vinyl records

Hard pressed: Resurgence in vinyl records

As the resurgence in vinyl records continues, manufacturers and their outdated machinery are struggling to keep up with the demand
Tony Jordan: 'I turned down the chance to research Charles Dickens for a TV series nine times ... then I found a kindred spirit'

A tale of two writers

Offered the chance to research Charles Dickens for a TV series, Tony Jordan turned it down. Nine times. The man behind EastEnders and Life on Mars didn’t feel right for the job. Finally, he gave in - and found an unexpected kindred spirit
Could a later start to the school day be the most useful educational reform of all?

Should pupils get a lie in?

Doctors want a later start to the school day so that pupils can sleep later. Not because teenagers are lazy, explains Simon Usborne - it's all down to their circadian rhythms
Prepare for Jewish jokes – as Jewish comedians get their own festival

Prepare for Jewish jokes...

... as Jewish comedians get their own festival
SJ Watson: 'I still can't quite believe that Before I Go to Sleep started in my head'

A dream come true for SJ Watson

Watson was working part time in the NHS when his debut novel, Before I Go to Sleep, became a bestseller. Now it's a Hollywood movie, too. Here he recalls the whirlwind journey from children’s ward to A-list film set
10 best cycling bags for commuters

10 best cycling bags for commuters

Gear up for next week’s National Cycle to Work day with one of these practical backpacks and messenger bags
Paul Scholes: Three at the back isn’t working yet but given time I’m hopeful Louis van Gaal can rebuild Manchester United

Paul Scholes column

Three at the back isn’t working yet but given time I’m hopeful Louis van Gaal can rebuild Manchester United
Kate Bush, Hammersmith Apollo music review: A preamble, then a coup de théâtre - and suddenly the long wait felt worth it

Kate Bush shows a voice untroubled by time

A preamble, then a coup de théâtre - and suddenly the long wait felt worth it
Robot sheepdog technology could be used to save people from burning buildings

The science of herding is cracked

Mathematical model would allow robots to be programmed to control crowds and save people from burning buildings
Tyrant: Is the world ready for a Middle Eastern 'Dallas'?

This tyrant doesn’t rule

It’s billed as a Middle Eastern ‘Dallas’, so why does Fox’s new drama have a white British star?