|
ScottishPower plans Net IPO
|
 |
September 17, 1999: 5:16 a.m. ET
Britain's largest utility will float telecom, Net assets by year end; could raise $2.4B
|
LONDON (CNNfn) - ScottishPower, Britain's largest utility, announced plans Friday to float a minority stake in its communications business ScottishTelecom.
The spin-off has been anticipated for some time by analysts, who have valued the telecom and Internet businesses at around 1.5 billion pounds ($2.4 billion).
ScottishPower is also believed to have considered selling the business, which transmits data along its powerline network. The proceeds from the initial public offering (IPO), which excludes the firm's cellular business, will be used to fund expansion of ScottishTelecom.
ScottishPower serves 20 percent of Britain's households with a mixture of power, water and communications services.
The company announced plans last year to merge with Pacificorp (PPW) in a deal valued at $7.8 billion. The deal is still awaiting regulatory approval.
ScottishTelecom has been the fastest-growing part of the business, boosted by its acquisition of Demon, Britain's second-largest Internet service provider after Freeserve (FREEV). The unit's sales doubled in its last fiscal year to 166 million pounds.
ScottishPower (SPW) shares climbed 1 percent in early London trade but quickly turned around to trade almost 1 percent lower at 588 pence.
Analysts said the sale could result in the stock being upgraded, similar to that achieved by National Grid [LSENGG] following its spin-off of telecom group Energis (EGS).
The cellular assets are also to be sold separately, with Vodafone AirTouch (VOD) tipped as a likely buyer. 
|
|
|
|
|
|
Scottish Power
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
