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Scottish Power takeover 'concern' Scottish Power takeover 'concern'
(about 6 hours later)
Scotland's First Minister Jack McConnell has said the planned takeover of Scottish Power would be "of concern" to customers and employees.Scotland's First Minister Jack McConnell has said the planned takeover of Scottish Power would be "of concern" to customers and employees.
He said he would raise the issue with European Commission President Jose Manuel Barroso during his Scots visit.He said he would raise the issue with European Commission President Jose Manuel Barroso during his Scots visit.
Glasgow-based Scottish Power has backed a £11.6bn takeover offer from Spanish energy company Iberdrola.Glasgow-based Scottish Power has backed a £11.6bn takeover offer from Spanish energy company Iberdrola.
Ignacio Galan, chairman of Iberdrola, said: "It will be very positive for employees and customers."Ignacio Galan, chairman of Iberdrola, said: "It will be very positive for employees and customers."
Iberdrola said it planned to retain Scottish Power's offices in the UK where the company employs about 9,500 people.Iberdrola said it planned to retain Scottish Power's offices in the UK where the company employs about 9,500 people.
There are real fears that Scottish employees, consumers and taxpayers will be worse off Nicola Sturgeon MSPSNP Holyrood leader Scottish Power backs Spanish bidThere are real fears that Scottish employees, consumers and taxpayers will be worse off Nicola Sturgeon MSPSNP Holyrood leader Scottish Power backs Spanish bid
Mr McConnell said: "Today's announcement will be of concern to Scottish consumers and the employees of Scottish Power."Mr McConnell said: "Today's announcement will be of concern to Scottish consumers and the employees of Scottish Power."
He said he planned to seek assurances on behalf of Scottish customers that prices would not be affected and the workforce would have their skills and contributions valued.He said he planned to seek assurances on behalf of Scottish customers that prices would not be affected and the workforce would have their skills and contributions valued.
The first minister argued that the key to success for Scotland was its ability to compete globally.The first minister argued that the key to success for Scotland was its ability to compete globally.
"Clearly this is a big announcement for the company and a big announcement for Scotland, one that has implications," he added."Clearly this is a big announcement for the company and a big announcement for Scotland, one that has implications," he added.
The tie-up between Scottish Power and Iberdrola will create Europe's third largest utility with an enterprise value of £43.2bn.The tie-up between Scottish Power and Iberdrola will create Europe's third largest utility with an enterprise value of £43.2bn.
'Urgent reassurance''Urgent reassurance'
Scottish Power chief executive Philip Bowman said the deal enabled his company to expand its geographical and operational presence and diversify its portfolio.Scottish Power chief executive Philip Bowman said the deal enabled his company to expand its geographical and operational presence and diversify its portfolio.
He said: "This transaction achieves these objectives without the adverse social consequences for employees that would be likely in most other merger scenarios."He said: "This transaction achieves these objectives without the adverse social consequences for employees that would be likely in most other merger scenarios."
Scottish National Party Holyrood group leader Nicola Sturgeon said she was convinced the deal was not in Scotland's national interest.Scottish National Party Holyrood group leader Nicola Sturgeon said she was convinced the deal was not in Scotland's national interest.
"There is nothing in it that will make Scotland more competitive," she said."There is nothing in it that will make Scotland more competitive," she said.
Employees arrived at work to news of a takeover dealEmployees arrived at work to news of a takeover deal
"Instead, there are real fears that Scottish employees, Scottish consumers and Scottish taxpayers will be worse off as a result."Instead, there are real fears that Scottish employees, Scottish consumers and Scottish taxpayers will be worse off as a result.
"It is vital that we have assurances about jobs staying in Scotland as well as the company itself.""It is vital that we have assurances about jobs staying in Scotland as well as the company itself."
The Scottish Conservatives' deputy leader, Murdo Fraser, said: "The loss of a Scottish-headquartered company is never a cause for celebration and it is right to seek assurances as to the future of the workforce and the impact on Scottish customers.
"However, only the most parochial attitude would seek to inhibit natural commercial activity.
"It is precisely that sort of approach which will have companies fleeing from Scotland."
A major union demanded guarantees on the jobs and conditions of Scottish Power employees.A major union demanded guarantees on the jobs and conditions of Scottish Power employees.
Business as usual
Dave Watson, Scottish organiser of Unison, said: "If this bid is accepted, both customers and staff will want urgent reassurance from the new owners that this Scottish success story will be maintained as an integrated business.Dave Watson, Scottish organiser of Unison, said: "If this bid is accepted, both customers and staff will want urgent reassurance from the new owners that this Scottish success story will be maintained as an integrated business.
"This means that jobs will be retained in Scotland and the rest of the UK business and that there will be no undermining of staff terms and conditions including the successful share ownership scheme.""This means that jobs will be retained in Scotland and the rest of the UK business and that there will be no undermining of staff terms and conditions including the successful share ownership scheme."
It was business as usual at the firm's headquarters at the Cathcart Business Park on the south side of Glasgow.It was business as usual at the firm's headquarters at the Cathcart Business Park on the south side of Glasgow.
Many staff arrived at work unaware of the proposed takeover while others had only just learned of the news.Many staff arrived at work unaware of the proposed takeover while others had only just learned of the news.
Those BBC Scotland news website spoke to said their thoughts were now turning to their future job security.Those BBC Scotland news website spoke to said their thoughts were now turning to their future job security.