[17
JAN 01] POWERGEN NEWS
Coventry Firm Valued At £5b In Takeover Talk
Coventry-based
Powergen could be taken over by a German company today after news of
an offer for the firm sent the stock market soaring.
Shares
rose by 95p to 703p after the board admitted it has had several
approaches about a possible takeover.
The
news was made public after German firm E. ON AG said it was interested
in buying the company which itself took over East Midlands Electricity
several years ago.
Analysts
say the shares could be worth 800p each, valuing the company at more
than £5 billion.
A
statement released by the board said:
“The
Board of Powergen notes the announcement made today by E.ON AG that
it is engaged in preliminary discussions about a possible
combination with Powergen.
“The
Board confirms that it has received a number of approaches which may
or may not lead to an offer.
“The
discussions are at a preliminary stage and there is no assurance
that any of these discussions may result in an offer for the issued
share capital of the company.”
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