A bidding war has erupted over British electric company TheEnergy Group with Texas Utilities formally entering the battleMonday with an offer of 810 pence (US$13.37) for each Energy Groupshare – 45 pence more than that of the initial bidder PacifiCorp.The Portland, OR firm was not to be out-penced, however, coming inwith a new offer of 820 pence. PacifiCorp said it has acquired45,987,079 EG shares, representing approximately 8.8% of theBritish Firm’s outstanding share capital.
The Texas Utilities’ bid earlier in the day was its first formalbid for the British electric utility, though its intentions havebeen public for a couple weeks. Texas Utilities’ offer valued thefully diluted share capital of Energy Group at about $7 billion.The plan was for Energy Group to sell the Peabody coal business,which includes Citizens Power, to an affiliated company of LehmanBrothers Merchant Banking Partners II for about $2.3 billion cashplus the assumption of debt. TU said it was considering whether toincrease its bid.
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