E.ON bid sparks fresh takeover talk
Hopes for a further round of takeover activity in the energy sector grew today following a £20 billion move by Powergen owner E.ON for Spanish firm Endesa.
E.ON made its offer for Endesa, with more than 20 million customers in Spain and Latin America, after failing to land Scottish Power with an £11m (€16.1bn) bid last year.
The German company already has 30 million customers in 20 European countries, including in the UK where it serves around nine million Powergen accounts.
While Endesa has yet to respond to the offer, shares in UK-based power companies jumped as investors eyed further deals in the sector.
Centrica, which has attracted the interest of Russian firm Gazprom, rose 4% while power plant owner International Power gained by a similar amount.
