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 Scarlett Johansson new band 'already hit with legal complaint' from another The Singles
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Husband and wife die holding hands within hours of each other after 67 years of marriage
Mohammed Emwazi: Nine things we know about Isis militant 'Jihadi John'
What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
'Jihadi John': Mohammed Emwazi – from British computer programmer to Isis executioner
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
This is what it's like to be dead, according to a guy who died for a bit
iJobs Money & Business
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...
£22,000 - £23,000: Beverley James: Are you looking for the opportunity to work...