GDF mulls International Power options after rejection

GDF Suez said yesterday it would consider whether to pursue its plan to buy out minority shareholders in International Power after the British company rejected its French parent’s $9.6 billion offer for the 30 per cent it does not already own.

GDF will “consider its different options regarding International Power, including the possibility of withdrawing its proposed offer,” the Paris-based utility said yesterday.

The statement came less than an hour after International Power said an independent committee appointed by its board had rejected the 390p-per-share offer tabled by GDF last week.

International Power shares were down 0.2 per cent at 402.20 pence a share in the morning, when shares in GDF were down one per cent at €8.85.

The French company’s bid had valued International Power at $31.8 billion, only slightly above its market valuation immediately before the offer.

The International Power committee “unanimously concluded that the indicative proposal of 390 pence per share undervalues IPR,” the company said.

In their brief statement, the company’s independent directors also said GDF was barred from making a takeover offer without their backing before August 3.