The dueling U.S. titans were continuing their battle to be thenew owner of England’s The Energy Group. Texas Utilities said itacquired 36.9 million more Energy Group shares at 840 pence/share,representing about 7.1% of The Energy Group’s issued share capital,and now holds 114.4 million shares, about 21.96% of issued sharecapital. TU had the blessing of U.S. regulators for the shareacquisition.
Monday, PacifiCorp noted TU’s announcement of planned equityissues of up to $2.8 billion to finance its planned Energy Groupacquisition. PacifiCorp said TU failed to disclose whether its dealwould be accretive or dilutive to earnings on a fully dilutedbasis. “Texas Utilities has not made clear on what issuance ofequity and equity linked securities its accretion statements havebeen based and whether fully diluted or not,” PacifiCorp said. Thecompany said the size of the equity and equity linked issuesannounced by TU is greater than forecast by PacifiCorp in ananalysis last month.
Texas Utilities said it would issue up to $2.8 billion of equityor equity linked securities over the next 18 months to replace debtfinancing of its 840 pence/share offer for Energy Group. Until theequity issue, TU’s bid for Energy Group is 100% debt financed,PacifiCorp said.
The PacifiCorp offer is for 820 pence/share for Energy Group.The company has received all the regulatory clearances it hassought to proceed with its deal. TU has yet to gain regulatoryclearances in the United Kingdom or antitrust clearance in theUnited States.
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