GDF Suez to buy British utility International Power for $10 billion

French energy giant GDF Suez, Europe's biggest utility company by market value, today sweetened its takeover bid for the remaining 30 per cent of International Power Plc (IPR) it does not already own, to £6.4 billion ($10 billion).

The deal comes after the London-based company last month rejected a 390 pence a share or $9.5 billion offer from GDF Suez saying that the bid undervalued the company. (See: International Power rejects $9.5 bn offer from GDF Suez)

GDF Suez said that it and the independent directors of IPR reached an agreement on the terms of a recommended cash offer at 418 pence for each IPR share, representing a 20.8-per cent premium since 29 February, the last business day before the media speculated that GDF Suez would make an offer for IPR.

GDF Suez "has made an attractive proposal and the independent International Power directors have concluded that it represents a price that fairly reflects the company's position in international power generation markets and its inherent growth potential," said Neville Simms, senior independent director of IPR and chairman of the committee of independent IPR directors.

"The acquisition of the minority stake in International Power, based on strict financial discipline, constitutes a major step in the development of the group," said Gerard Mestrallet, chairman and CEO of GDF Suez.

Formed by the demerger of National Power in 2000, IPR generates electricity from various sources, including gas, coal, wind, solar, pumped storage, oil, and water.