Computer crash blamed for crucial delay in Hyder bid

Software problems and a computer crash contributed to the delays that resulted in Western Power Distribution, the apparent winner in the bid battle for Hyder, failing to announce its final offer in time to the Stock Exchange on Friday.

Software problems and a computer crash contributed to the delays that resulted in Western Power Distribution, the apparent winner in the bid battle for Hyder, failing to announce its final offer in time to the Stock Exchange on Friday.

The Takeover Panel will meet today to hear submissions from both bidders in an attempt finally to resolve Hyder's fate. Both bidders, Nomura, the Japanese bank, and WPD, a US utility joint venture, claimed victory in the chaotic finale on Friday, the last day that offers for Hyder could be increased.

The details of what went wrong on Friday, during an unprecedented sealed bid process run by the Takeover Panel, emerged yesterday as recriminations continued to fly behind the scenes in the battle for the Welsh utility.

The confusion stemmed from the fact that the apparent winner, WPD, did not make an announcement to the Stock Exchange by the 4.30pm deadline. WPD, which is advised by Schroder Salomon Smith Barney, was told at around 1.30pm that it had won, as Nomura had submitted no bid.

The missed Friday deadline was caused by the time needed for WPD to put together a new offer document including the revised price, and to allow time for Hyder's advisers, Dresdner Kleinwort Benson (DKB), to read and sign off the new offer. It is understood that the WPD side suffered software problems and a computer crash around this time. DKB did not receive the information until about 4pm. It also takes some time, often half an hour, for the Stock Exchange to process a complex document.

It is thought that everything was ready shortly after the 4.30pm, but by this time, Nomura had already lodged a complaint with the Takeover Panel over the missed deadline. Nomura claimed that this made the WPD bid null and void and that it had won, on the basis of having submitted the last valid bid, made on Wednesday, at 360p.

Under the rules of the contest, WPD won because it said in its sealed bid that it was prepared to pay up to 375p whereas Nomura did not raise its offer above the existing 360p-a-share bid. WPD was thus awarded the prize at a 5p premium to Nomura's bid - 365p-a-share.

The Takeover Panel took several hours to hear Nomura's protests on Friday and it was almost midnight before the Panel officially declared WPD the winner - despite acknowledging that the US company had missed the deadline. Nomura has persisted with its complaint. None of the parties involved would comment publicly yesterday. Suggestions on Friday, that it had been up to the Panel or even Hyder to make the crucial announcement by 4.30pm were withdrawn yesterday.

Hyder dropped 16p to 369p, as the company advised shareholders to take no action until the issue is cleared up.