International Power rejects $9.5 bn offer from GDF Suez

05 Apr 2012

1
International Power yesterday rejected a $9.5-billion bid from French energy giant GDF Suez for the 30 per cent stake it did not already own in the UK-based utility.

The board of International Power said that GDF Suez's offer of 390 pence a share undervalued the company. The company's shares were traded at 402 pence in early morning trading yesterday in London.

''The members of the Independent Committee have unanimously concluded that the indicative proposal of 390 pence per share undervalues International Power and accordingly GDF Suez has been notified that the independent committee is unable to accept the indicative proposal,'' International Power said in a statement.

GDF Suez refused to raise its bid and threatened to walk away, saying that any deal would be based on ''a strict disciplined and value-driven approach to earnings, indebtedness and returns.''

Formed through the 2008 merger of Gaz de France and Suez, Paris-based GDF, the world's second-largest power utility had last year acquired a 70-per cent stake in International Power, in order to create one of the world's largest power generation companies.

GDF, which is 35-per cent owned by the French government, is the largest gas supplier in Europe and amongst the world's biggest electricity producers.

It 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.

London-based International Power, formed by the demerger of National Power in 2000, generates electricity from various sources, including gas, coal, wind, solar, pumped storage, oil, and water.

It supplies power to more 4 million households in the UK.

The company has 45 power plants with 32,358 megawatts of capacity in operation and 4,567 megawatts of capacity under construction.

It operates in North America, Europe, the Middle East, Australia, and Asia.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers