GDF Suez takeover of IP boosted by investor
Invesco: cash sweetener not necessary for International Power takeover
International Power, the power generation company, was edged closer to a reverse takeover by French energy giant GDF Suez after Invesco, its biggest shareholder, said it would be content not to receive a special dividend to get the deal done, so long as a premium is reflected by another means.
"There should be some premium to reflect loss of control," the Financial Times quoted Neil Woodford, head of investment at Invesco Perpetual, on Sunday. "This is a deal that really should be done. I'm really confident that GDF will come up with something."
Under the terms of the proposed deal, GDF Suez would divest some it its international assets to International Power, who focus on power projects in the Middle East, Asia and Australia. The French company would then take a majority stake in the LSE-listed company.
Invesco holds an 11 percent stake in International Power. The energy company has stakes in several power project in the Middle East, such as 20 percent ownership of the 2,000MW Fujeirah 2 IWPP in the UAE which is currently in the commissioning stage.