UK Takeover Board Gives Centrica Jul 13 Deadline For Venture Bid
June 17 2009 - 7:11AM
Dow Jones News
The U.K. authority that oversees corporate mergers and
acquisitions said Wednesday that utility Centrica PLC (CNA.LN) must
decide by 1600 GMT on July 13 whether to mount a full takeover bid
for North Sea gas producer Venture Production PLC (VPC.LN).
If Centrica does not make a formal takeover offer before the
deadline, it will be unable to do so again for six months, the
takeover panel said in a statement.
Centrica built up a 22% stake in Venture in May and says it is
considering a full cash offer for the company. Top executives of
the two companies have met to discuss an offer, but Venture says
the 725 pence per share Centrica paid for its 22% stake is not a
good price for the whole company.
Centrica is the U.K.'s largest retailer of natural gas, but does
not have enough of its own gas fields to supply all of its own
customers and is vulnerable to price swings on the wholesale
market. Acquiring Venture would go some way in addressing this
weakness, analysts say.
Centrica is being advised on the acquisition by JPMorgan Chase
& Co. (JPM) and Royal Bank of Scotland Group PLC (RBS).
-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317;
james.herron@dowjones.com
Venture Production (LSE:VPC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Venture Production (LSE:VPC)
Historical Stock Chart
From Oct 2023 to Oct 2024