Hyder looks at break up as takeover bids are cleared

The board of Welsh water and electricity company Hyder said this week that it would look again at a break-up of the company as an alternative to accepting take-over bids from either Nomura International or Western Power Distribution of the US. The board earlier dismissed the break-up idea because the required restructuring would have meant […]

The board of Welsh water and electricity company Hyder said this week that it would look again at a break-up of the company as an alternative to accepting take-over bids from either Nomura International or Western Power Distribution of the US.

The board earlier dismissed the break-up idea because the required restructuring would have meant the early redemption of company debts at a considerable premium. However, it said in the light of similar proposals for other utilities, for example Kelda’s plan to mutualise its domestic water business, its bond holders might now be prepared to be more flexible.

The announcement followed the clearance of the £460m Western Power bid last week by the European Commission.

Nomura is expected to boost its £403m offer before the latest deadline for accepting its bid expires on 26 July.

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