Nomura yields to Panel ruling and gives up on Hyder

Click to follow
The Independent Online

Nomura, the Japanese bank, yesterday abandoned its attempt to acquire Hyder, the Welsh utility, saying that it would not seek to overturn the Takeover Panel's ruling that Western Power Distribution's rival 365p-a-share bid had won.

Nomura, the Japanese bank, yesterday abandoned its attempt to acquire Hyder, the Welsh utility, saying that it would not seek to overturn the Takeover Panel's ruling that Western Power Distribution's rival 365p-a-share bid had won.

The decision brings to an end a four-month bid saga which descended into chaos over the last week, after the Panel imposed a final round of sealed bids. Nomura will not walk away empty-handed. It has booked a £30m profit on the 16.2 per cent stake it acquired in Hyder during the bid battle, at 260p a share.

Nomura did consider other options, including making a whole new bid above 365p a share, but this was not pursued as it would fall outside the takeover rules because the bid timetable had ended.

Guy Hands, head of Nomura's Principal Finance Group, which was behind the bank's bid, said: "We have decided not to prolong the period of uncertainty for Hyder's stakeholders, particularly the employees, who have been through a great deal."

In a reference to WPD's plans to outsource the running of Hyder's water business, he added: "Unfortunately Hyder was always going to be more valuable to someone willing to carry out a break-up strategy, which was never our intention."

On Wednesday, the full Panel upheld a decision made by its day-to-day executive on Friday last week, to award the contest to WPD's bid, which valued Hyder at £565m.

Nomura was considering applying for a further hearing, before the Appeals Committee of the Panel, to have this overturned. However, the Japanese bank pulled back because it thought that leave to appeal might not be granted. Its grievance does not fit easily into the stated criteria for the permission to go to the Appeals Committee. Nor will Nomura seek a judicial review.

Comments