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Texas Utilities raises stake
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March 17, 1998: 12:02 p.m. ET
Utility seeks stronger position in battle with PacifiCorp for Energy Group
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NEW YORK (CNNfn) - Texas Utilities Co. on Tuesday increased its stake in much sought-after Energy Group Plc in its latest salvo against rival suitor PacifiCorp.
Texas Utilities bought 36.9 million shares of Energy Group on the London Stock Exchange Tuesday, paying 840 pence ($13.86) per share. The approximately $511 million purchase increased Texas Utilities' stake by 7.1 percent to a total of 21.96 percent of the British utility.
Texas Utilities has been locked in a bidding war with PacifiCorp, a U.S. energy rival, for control of Energy Group. Texas currently has an offer of $7.3 billion on the table, but its bid has not been cleared by British and U.S. regulators.
Energy Group would not comment Tuesday on the actions by Texas Utilities, but earlier this month said it would not yet recommend either offer to its shareholders.
PacifiCorp., a Portland, Ore.-based electricity and phone service provider, is offering 820 pence ($13.53) per share, or $7.2 billion, for Energy Group.
A spokesman for PacifiCorp criticized Texas Utilities' move to raise its holdings, because the company has not yet received certain regulatory approvals.
"Further buying of this magnitude of Energy Group shares by Texas is risky before a decision on Monopolies and Mergers Commission (MMC) referral has been taken," the spokesman said.
American electric utility companies have eagerly sought British utilities, which the United Kingdom privatized in 1990. Energy Group is among the biggest U.K. utility prizes with $14 billion in assets and more than $7 billion in annual revenue.
Dallas-based Texas Utilities is a holding company for electric and natural gas utility services, energy marketing, telecommunications, and other energy-related services.
-- from staff and wire reports
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