GDF Suez and UK’s International Power renew merger talks
19 Jul 2010
French energy giant GDF Suez is reportedly working a £6.4-billion ($9.8 billion) cash bid for Britain's power generating company International Power, the second such talks in six months.
The Mail on Sunday reported yesterday, citing sources that after merger talks broke down in January 2010, both groups have renewed discussions for a 420-pence-a-share proposal although the talks were at an early stage.
The paper said that GDF has met investment advisers NM Rothschild, Goldman Sachs and BNP Paribas over the move, and has the backing of the French government, which holds a 35-per cent stake.
Paris-based GDF, the world's second-largest power utility company that was formed through the merger of Gaz de France and Suez in 2008, (See: Suez, GDF shareholders agree to $159-billion merger) is the largest gas supplier in Europe and amongst the world's biggest electricity producers.
The company, which is 35-per cent owned by the French government, generates electricity from wind, biomass and bio gas, hydro, natural gas, coal, nuclear, and other non-renewable sources, and involves in energy procurement and trading business.
As of 31 December 2009, the company had installed capacity of approximately 73 gigawatts power; and proven and probable reserves of 763 million barrels of oil equivalent.
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