Shares of Glasgow-based Scottish Power PLC, parent company of Portland, OR-based windpower, marketing and storage company PPM Energy, soared Wednesday about 13% on the New York Stock Exchange after the company said that it received a potential buyout offer.
"The board of Scottish Power confirms that it has received an approach, which may or may not lead to an offer being made for Scottish Power," the company said in a statement. "There can be no certainty that an offer will be made and any offer that is made will be considered by the board at the appropriate time. A further announcement will be made in due course."
Scottish Power shares rose 9.6% to 736 pence ($14.04) on the London Stock Exchange and jumped about 13% to $57.86 on the New York Stock Exchange.
The Associated Press reported that German utilities RWE AG and E.On AG each denied having approached the company. Scottish Power was in talks with E.On last year, but the German company ended discussions after the Glasgow-based energy supplier rejected its offer of 570 pence ($9.76) a share, or about 11.3 billion pounds ($19.4 billion). Scottish Power CEO Ian Russell said the E.On offer did not reflect the fair value of the company and expressed concern about the lengthy regulatory approval process.
Scottish Power provides gas and power distribution services to 5.2 million utility customers in the United Kingdom. Last year, the company sold PacifiCorp to MidAmerican Energy Holdings for $9.4 billion. The deal excluded PPM Energy. PPM currently owns or operates 830 MW of wind power facilities, with a goal of having 2,300 MW by 2010, and it has three natural gas storage fields and two others in development spread from western Canada to eastern Texas.
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