The Portuguese utility company Energias de Portugal (EDP) has rejected the 9 billion euro buyout offer put forward last week by Chinese state-backed China Three Gorges Corp., asking for a higher price.
Friday’s bid was for EDP’s remaining 77% of shares not already owned by Three Gorges at 3.26 euros a share – just over a 5% premium on the stock’s previous closing price.
Portugal’s largest energy firm said in a regulatory filing on Tuesday that “the implied offer premium is low considering what is customary for European utilities where the offerer has acquired control.” As the Nikkei Asian Review reports, similar past deals have warranted a 30% premium on average share prices.
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