ScotPower bid costs pounds 132m
Tuesday 11 May 1999
The bid costs are far higher than expected and result from a hefty payment of stamp duty because ScottishPower is funding the acquisition with new shares.
Listing particulars relating to the deal, and sent to shareholders yesterday, also show that PacifiCorp's top executives will receive compensation payments worth nearly $7m in addition to their share option entitlements if they lose their jobs within two years.
The takeover will cost ScottishPower pounds 68m in investment banking, legal, accounting and regulatory fees. But in addition, it will have share issue costs of pounds 65m, mainly relating to the stamp duty payable.
Richard O'Brien, chief financial officer of PacifiCorp, will get a $200,000 bonus when the deal goes through. He is also entitled to $1.83m in severance pay and $620,000 in retirement pay if his contract is terminated within 24 months, and has 241,000 share options with a value of $5m.
Two other executives - Dennis Steinberg and John Bohling, have severance packages worth $2m and $1.85m respectively and share options with face values of $2.8m and $2.5m respectively.
ScottishPower said last week that the merger remained on course for completion this autumn despite regulatory hurdles in the six states where PacifiCorp operates.
The company estimates that it will be able to make savings of $200m from the merger and has pledged not to implement the electricity price rises planned by the previous PacifiCorp management.
- 1 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 2 Students offered grants if they tweet pro-Israeli propaganda
- 3 Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
- 4 Exclusive: Cameron’s Big Society in tatters as charity watchdog launches investigation into claims of Government funding misuse
- 5 Israel has discovered that it's no longer so easy to get away with murder in the age of social media
MH17 crash: Investigators discover more human remains and 'huge section of plane'
Susan Sarandon on David Bowie romance: 'He's worth idolising'
Students offered grants if they tweet pro-Israeli propaganda
A day in the life of Vladimir Putin: The dictator in his labyrinth
Exclusive: Cameron’s Big Society in tatters as charity watchdog launches investigation into claims of Government funding misuse
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
John Barrowman praised for Commonwealth Games opening ceremony gay kiss
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...