Scottish Power rejects EON approaches

22 November 2005 - Scottish Power said today it had called of discussions with E.ON having rejected a bid offer from the German utility

The company said it had taken independent financial advice from Morgan Stanley and UBS who concluded that Eon's offers did not reflect fair value and that anyway shareholders would not see any money until 2007. Chief executive Ian Russell said that the price did not reflect what he called "the significant opportunities to deliver further strong growth".

EON had tabled several offers since declaring its interest in Scottish Power in September the latest of which on November 18 was for 570p a share plus normal dividend payments. However, there would have been conditions around the payout of £2.5bn ($4.3bn) to shareholders from the sale of the US generation business Pacificorp.

Scottish Power also announced a revised dividend policy that will bring a fourth-quarter payout of 9.4p a share, against 7.65p last time, resulting in an 11.1 per cent increase in the annual total to 25p. For the next two years the target will be dividend growth of at least 7 per cent.

In response to EON's interest Scottish Power announced a board shake up in early September with corporate restructuring and a set of cost reduction measures.

Sponsored by FLSmidth

Related Articles

First Wind Solar Group Rocky Mountain Power PacifiCorp Berkshire Hathaway Energy solar photovoltaic PV Utah Four Brothers Seven Sisters

First Wind solar unit finalizes PPAs for Utah PV projects

First Wind finalized four 20-year power purchase agreement with Rocky Mountain Power (RMP), a unit of PacifiCorp and part of Berkshire Hathaway Energy.

EnerNOC to supply demand response system to PacifiCorp

EnerNOC Inc. signed a 10-year contract with PacifiCorp to supply approximately 185 MW of electric reduction capability in Idaho and Utah with the potential to expand into other states.

Follow Power Engineering on Twitter
Latest News

MHPS to supply M501J gas, steam turbines to new combined-cycle power plant in Korea

Mitsubishi Hitachi Power Systems (MHPS), jointly with Marubeni Corp., has received an order f...

Business leaders throw support behind coal plant proposal

Business leaders on Thursday outlined the economic devastation they say could come if New Mex...

TVA seeks public comment for future coal ash storage at Bull Run

The Tennessee Valley Authority (TVA) is asking for public input on plans to expand dry onsite...

California Public Utilities Commission Approves NRG Energy’s Carlsbad Energy Center

California Public Utilities Commission (CPUC) has approved the SDG&E Power Purchase and T...

Vermont joins international effort to fight climate change

Gov. Peter Shumlin says Vermont has signed on to what he called a first-of-its-kind agreement...

Products May 2015

Callaway Energy Center's Replacement Reactor Vessel Closure Head Project

Replacing heavy equipment is one way utilities can extend the life and increase the reliabili...

Managing CCRs and Process Water: Why Handling Bottom Ash Wet May Remain The Best Option

The U.S. coal-fired electric generation industry once again finds itself in the crosshairs of...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free NDT Job Training to Vets, Disadvantaged Young Adults

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free ND...

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tech Talent

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tec...

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possible Delisting

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possi...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>