RWE closes in on Innogy

    5 Mar 2002 – Speculation has mounted this week concerning the possibility of a take-over of UK utility Innogy by German power group RWE. Sources close to both sides indicated that talks were continuing although price still separates the sides.

    Rival bids for Innogy do not seem to have materialized although Scottish Power announced that it had been involved in preliminary discussions which it was no longer pursuing. Innogy’s shares fell to 250 pence today which is below the 260 pence figure put on RWE’s initial approach. It is still nearly 20 per cent higher than it was ahead of the announcement of an approach on February 18.

    RWE’s interest in Innogy mirrors German rival E.ON’s agreed bid for Powergen but RWE will be anxious not to overpay following Powergen’s poor results last month. Innogy does not have any US operations unlike Powergen. E.ON expects to complete its€8.2bn deal in April.

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