UK Takeover Board Gives Centrica Jul 13 Deadline For Venture Bid

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

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