Dominion targets East Midlands
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.East Midlands Electricity was last night preparing to mount a full-scale bid defence as news emerged that Dominion Resources, a US utility company, was considering making a possible pounds 1.2bn takeover offer.
The announcement followed a day of mounting speculation, with East Midlands shares soaring 70p to close at 607.5p, adding pounds 200m to the company's stock market value.
Dominion Resources, the parent company of Virginia Electric and Power, said it was evaluating a possible offer and its board would meet soon to consider how to proceed. In a statement the company said: "The present view of the executive management of Dominion Resources is that it will not recommend to its own board making an offer at a price that is much in excess of East Midlands Electricity's closing price today of 608p per share."
A team of Dominion executives flew to London earlier this week and are thought to be seeking an urgent meeting with Nigel Rudd, East Midland's chairman. They have instructed SBC Warburg and US buyout specialists Wasserstein Perella as advisers. Mr Rudd was last night travelling back to Britain from a business trip abroad.
An East Midlands spokesman said: "We note the announcement but until there is a formal offer on the table can't comment."
The US group had been linked with a bid for East Midlands in August, but the move had been put on hold pending scrutiny by regulators concerned about its impact on Dominion's 1.8 million customers in Virginia and South Carolina. It is thought the necessary hurdles have now been cleared.
However a formal offer cannot be launched until the Dominion board meeting. The chairman, Thomas Capps, is in the US and given the time it would take for the group's team to return from the UK, it suggests a bid would be unlikely until Friday at the earliest.
Dominion's current market valuation is $6.6bn (pounds 4bn).
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments