Scottish Power backs Iberdrola's EUR 17.2 bn bid

The board of Scottish Power, a major British energy supplier, has backed an EUR 17.2 bn bid from Spain's Iberdrola in a move that would create Europe's third-largesst utility group. In the event the deal goes ahead, it will trigger a payout of up to EUR 6 mln for Scottish Power's ceo Philip Bowman who will consequently step down, the Guardian newspaper said.

The board of Scottish Power, a major British energy supplier, has backed an EUR 17.2 bn bid from Spain's Iberdrola in a move that would create Europe's third-largesst utility group. In the event the deal goes ahead, it will trigger a payout of up to EUR 6 mln for Scottish Power's ceo Philip Bowman who will consequently step down, the Guardian newspaper said.

The deal is below the EUR 12 a share that had been mooted ahead of the formal offer. However, a counterbid seems unlikely. The German utility company RWE ruled itself out of the race this week, while another potential interested party, SSE, said earlier this month that it was not going to become embroiled in a bidding war.

Iberdrola said the deal is in line with its long-term strategy. 'The new group will be well positioned for the future European energy market, particularly in renewable energy, a sector in which it will be a world leader'. The group has secured debt finance of almost EUR 11,9 bn, arranged by ABN Amro, Barclays Capital and Royal Bank of Scotland.

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