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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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
-
Parental contributions to kids' university living costs could reach £14,000 a yearParents helping kids with university living costs face contributions of up to £14,000 per year, according to a report from HEPI and TechnologyOne.
-
Rightmove: property asking prices hit record highNews Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
