PacifiCorp Outbids Texas Utilities for Energy Group

PacifiCorp, a US-based energy company, has made a takeover bid of $7.05 billion for Britain's Energy Group PLC, outdoing Texas Utilities Co. by a slight 1 percent margin. The bidding war, which has left London investors in a state of uncertainty, has seen both companies vying for control of Energy Group, which owns the top US coal producer, Peabody Holding Co. Inc., and Britain's largest electric utility, Eastern Group.

Key Takeaways:

• PacifiCorp's offer of $7.05 billion for Energy Group outbid Texas Utilities' offer by 1 percent.
• Texas Utilities, despite offering less per share, claimed its offer valued Energy Group at 4.3 billion pounds ($7.1 billion), slightly higher than PacifiCorp's valuation.
• The bidding war has left London investors uncertain, with Energy Group's shares closing at 806 pence ($13.30) on the London Stock Exchange.
• Energy Group had initially backed Texas Utilities' bid, which included plans to sell Peabody Holding Co. Inc. to Lehman Brothers for $2.3 billion.
• PacifiCorp has purchased an 8.6 percent stake in Energy Group at its new offer price of 820 pence ($13.53) per share.

Statistics:

• PacifiCorp's takeover bid: $7.05 billion
• Texas Utilities' takeover bid: $7.1 billion
• Energy Group's market value: 4.3 billion pounds ($7.1 billion)
• Peabody Holding Co. Inc. sale price: $2.3 billion
• Energy Group's London Stock Exchange closing price: 806 pence ($13.30)
• London investors' push-up on Energy Group shares: 3.6 percent

Sources:

• The wire service does not specify which wire service this article originally came from.
• The Associated Press