10p-a-share discount tipped

Private investors in National Power and PowerGen are expected to receive a 10p per share discount on the first instalment compared with the price paid by institutions, due to be announced today.

The initial discount is in addition to incentive discounts of up to £200 for private investors who register and buy their shares through a share shop and who hold on to their shares.

City analysts believe the price paid by institutions for shares in National Power will be 180p compared with 170p for private investors, and 195p for PowerGen shares compared with 185p. The price for the second instalment for all investors will be 170p for National Power Shares and 185p for PowerGen.

The third and final instalment will be decided by institutional bidding and will be announced just before dealings in the shares begin on 6 March.

Kenneth Clarke, the Chancellor, is due to reveal the initial discount at today's launch of the public offer. The minimum investment for the UK public will be about £1,000, suggesting that the Government is seeking deeper rather than wider share ownership.

Shares will be offered in a package of three National Power for each two Powergen but the partly-paid shares will trade separately. Private investors who want larger allocations than might be available in the public offer can also buy shares through the international offer but these will not be eligible for discounts.