A Possible Takeover of International Power

Morningstar analysts discuss next steps for GDF Suez and International Power

Morningstar 30 March, 2012 | 10:14AM

GDF Suez (GSZ) announced late this week that it was exploring the possibility of offering GBP 390 per share for the remaining 30% stake of International Power (IPR) that it does not already own. Shares in International Power immediately jumped, rallying by nearly 6% in a day when the overall FTSE declined and hit its lowest level in two months.

Morningstar analysts Mark Barnett and Charles Fishman explore in their latest research note how a bidding process could unfold:

"GDF Suez announced Thursday that it has discussed with the independent directors of International Power a possible cash offer of GBP 390 per share for the remaining 30% of the shares not already held by GDF Suez. Pursuant to the rules of the UK City Code on Takeovers and Mergers, GDF Suez has until April 26 to either announce, after approval by its board, a firm intention to make an offer for International Power or announce that it does not intend to go forward with the offer.

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