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| Version 0 | Version 1 |
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| Scottish Power backs Spanish bid | Scottish Power backs Spanish bid |
| (about 3 hours later) | |
| Scottish Power has backed a £11.6bn ($22.5bn; 17.1bn euro) takeover offer from Spain's second largest electricity company Iberdrola. | Scottish Power has backed a £11.6bn ($22.5bn; 17.1bn euro) takeover offer from Spain's second largest electricity company Iberdrola. |
| Earlier this month Iberdrola confirmed it was in talks with the utility group as it searched for investment targets. | Earlier this month Iberdrola confirmed it was in talks with the utility group as it searched for investment targets. |
| The tie-up will create Europe's third largest utility. Scottish Power has more than 5.2 million UK customers. | The tie-up will create Europe's third largest utility. Scottish Power has more than 5.2 million UK customers. |
| The deal values each Scottish Power share at 777p. In 2005, it rejected a 570p a share bid from Germany's E.On. | The deal values each Scottish Power share at 777p. In 2005, it rejected a 570p a share bid from Germany's E.On. |
| Spanish companies have been snapping up UK firms over the past year, the most recent being Ferrovial's purchase of airports operator BAA in June. | Spanish companies have been snapping up UK firms over the past year, the most recent being Ferrovial's purchase of airports operator BAA in June. |
| Earlier in the year mobile phone firm O2 was taken over by Telefonica, while Abbey was snapped up by Santander. | Earlier in the year mobile phone firm O2 was taken over by Telefonica, while Abbey was snapped up by Santander. |
| 'Attractive' deal | |
| The offer values each Scottish Power share at 777p. Under the deal investors will get 400p a share cash as well as 0.1646 of a new Iberdrola share. | The offer values each Scottish Power share at 777p. Under the deal investors will get 400p a share cash as well as 0.1646 of a new Iberdrola share. |
| However, Scottish Power shares fell on news of the agreement, since earlier press speculation had suggested the offer could be as high as 800p a share. | |
| Shares in the group slipped 7.5p, or 1.01%, to 739p in early trade. | |
| Iberdrola said the tie-up was "strategically attractive, creating a leading European integrated utilities group with a broad geographical presence and a strong platform for future growth". | |
| The offer could trigger rival bids from French utility EDF and German rival RWE, who have been watching the situation. | The offer could trigger rival bids from French utility EDF and German rival RWE, who have been watching the situation. |
| Earlier this month Scottish Power said profits for the six months to 30 September had jumped 77% to £483m. | |
| The utility firm is made up of four divisions - Energy Retail, Energy Wholesale and Energy Networks in the UK and PPM Energy in the US. | |
| It has electricity generation and gas storage facilities in the UK, US and western Canada and is Britain's biggest generator and developer of wind energy. | |
| Iberdrola itself is a specialist in wind power and has operations in 28 countries. |