GDF looks to buy remaining stake in Int'l Power

UK utility giant International Power has confirmed that it has received a non-binding indicative proposal from French electricity giant GDF Suez to buy-up the remaining stake in the firm.

The 390p-a-share cash approach - for the remaining 30% interest in International Power that it does not already own - is a slight premium to yesterday's closing price of 383.4p and values the business at just under £20bn.

The stock jumped 5.6% after the announcement, taking the share price to 404.9p, suggesting that GDF may have to shell-out a bit more to please investors.

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"The proposal is subject to certain pre conditions and there can be no certainty that an offer will ultimately be forthcoming or on the terms on which any offer might be made," International Power said in a statement.

"IPR shareholders will be kept informed of relevant developments and in the meantime are advised to take no action."

BC