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RWE predicts bid approval
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February 28, 2001: 7:22 a.m. ET
German power utility expects approval for $2.8 billion Cantabrico bid
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LONDON (CNN) - RWE said on Wednesday it expects Spanish approval for its $2.8 billion bid for Hidroelectrica del Cantabrico in the next few days.
Germany's biggest power company said it expects the Spanish stock exchange to clear its acquisition of Spain's fourth-largest utility, although other potential bidders are hovering.
Essen-based RWE also announced that first-half operating profit rose 20 percent to  1.67 billion ($1.5 billion), inline with expectations, from 1.4 billion a year ago.
Net profit rose 15.2 percent to 493 million, or 0.87 a share, from 428 million, or 0.78 a share, in the year earlier period. Revenue rose 29.1 percent to 29.5 billion.
The company said the numbers were boosted by the acquisition of smaller German utility VEW, "above average" profits from its Petroleum and Chemical unit and cost-cutting programmes.
The cost cutting programme, which involved job losses, saved some 700 million. The company also sold business worth 3 billion by the end of last year, as it focuses on its water, gas and electricity business.
RWE (FRWE) has been on the acquisition trail since the German market was liberalised in 1998. Growth in competition led to lower power prices, so late last year the company acquired Britain's Thames Water for $9.8 billion.
The company expects Thames Water to boost group operating profit by 15 percent, while group operating profit excluding Thames is expected to increase by at least 10 percent in its full year to June 30.
Shares in RWE rose 0.9 percent to 41.69 in midday trade in Frankfurt.
RWE's quest for a piece of the Spanish power market could be frustrated by other bids for Cantabrico: Spanish engineering company Ferroatlantica, backed by Germany's EnBW, is also interested.
Electricidade de Portugal, partnered with Spanish savings bank Cajastur, has also pitched an offer. 
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