MPs attack Nomura interest in Energy
Friday 30 January 1998
In an early day Commons motion, to be published today, Ian Gibson, Labour MP for Norwich in the heart of Eastern Electricity's customer region, will attack Nomura's interest as "totally inappropriate". The motion, likely to be signed by at least three other MPs with local connections, suggests ministers will come under intense political pressure to refer any Nomura bid to the Monopolies and Mergers Commission (MMC).
Nomura confirmed on Wednesday that it was in talks with Energy Group, which could lead to a bid likely to top pounds 4bn. Energy Group shares rose a further 9p yesterday to 748p on speculation.
It would be the first time a purely financial predator has launched a bid for a UK utility. Nomura's London operation has specialised in bids for everything from betting shops to pubs, which are then refinanced by issuing bonds backed by from the businesses.
Nomura yesterday issued a Stock Exchange statement which said that its 2.2 per cent stake in Energy Group, worth about pounds 85m, was held "in the normal course of its share trading activities". The statement said the stake was unconnected with Nomura's possible offer for Energy Group.
The Commons motion says MPs are "deeply concerned by the news that the Japanese finance house Nomura International is considering a takeover bid for Eastern Electricity." It continues: "It would be totally inappropriate for one of Britain's main public utilities to be owned by a City merchant bank with no experience at all of running a major utility company."
The motion also condemns a possible bid by Texas Utilities, the Dallas- based power group which is also in discussions with Energy Group. It criticises Texas's low credit rating and claims the company has had a history of problems with a nuclear power station. The motion urges that both bids, if they materialise, should be referred to the MMC.
Mr Gibson said he would ask ministers to make a statement on the issue.
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 4 Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Greece elections: Greek PM Alexis Tsipras takes aim at 'neo-liberal' Europe as country gears up for prolonged austerity battle
Pornhub star Mia Khalifa receives death threats after being ranked the site's top adult actress
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
Leaked documents show Ukip leaders approve NHS privatisation once it becomes more 'acceptable to the electorate'
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...