Rugeley Power Station owner rejects £6bn bid

THE operator of Rugeley Power Station has rejected a £6bn takeover bid, claiming it undervalues its business.

French group GDF Suez wants to take full control of International Power, in which it already has a 70% stake.

However, International Power said the 390p a share approach significantly undervalued its business and has rejected the approach.

International Power said it had consulted advisers and given the bid serious consideration but in a statement today, it said: “The members of the Independent Committee have unanimously concluded that the indicative proposal of 390p per share undervalues IPR and accordingly GDFS has been notified that the Independent Committee is unable to accept the indicative proposal.”  
 
GDF acquired its 70% stake in International Power in 2010 as part of a deal that saw the British firm take on GDF’s non-French power generation operations.