PowerGen eager for US purchase
UK generator PowerGen has said that a US acquisition was a priority. The company is willing to spend up to $5bn within the next 12 months. The company has also said it wants acquire another UK regional electricity distribution business.
PowerGen has identified 30-40 potential targets in the US each valued at between $2bn and $5bn.
The company was involved in merger talks with Reliant (formerly Houston Industries) which collapsed. PowerGen said management control problems made it difficult to merge with a similar sized or larger US group.
Analysts, meanwhile, feared that PowerGen would pay too much in its haste to enter the US market.