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Nomura waves white flag
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August 17, 2000: 2:20 p.m. ET
Japanese investment bank drops out of Hyder bidding, leaves U.K. utility to WPD
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NEW YORK (CNNfn) - Nomura International PLC officially ended its efforts to win a heated takeover battle for Hyder PLC Thursday, clearing the way for U.S.-based Western Power Distribution to acquire the British water and energy utility.
Nomura's hand essentially was forced Wednesday when Britain's takeover panel dismissed an appeal from the Japanese investment bank, who argued WPD's revised sealed bid of 365 pence per share, valuing Hyder at £565 million ($849 million), could be accepted even though it was posted after Friday's deadline.
The company said in a statement it "has decided not to appeal further the Takeover Panel's decision that the offer of 365 pence per share by WPD Limited for Hyder should be allowed to be made."
Nomura immediately launched an appeal after WPD posted its bid last week in response to a rare mandate from U.K. regulators that both parties submit sealed final bids for the company in order to end the prolonged takeover battle.
The Japanese company did not submit an offer because it opposed the panel's decision to intervene and bring to a close the uncertainty surrounding the future of troubled Hyder, which put itself up for sale in March after the government imposed tough price cuts that threatened to crimp earnings
WPD, which is owned by Southern Co. (SO: Research, Estimates) of Atlanta and Allentown, Pa.-based PPL Corp. (PPL: Research, Estimates), also would take on £1.8 billion ($1.65 billion) in Hyder debt as part of its bid.
The takeover panel has given Hyder shareholders until August 30 to accept WPD's offer. 
-- Reuters contributed to this story
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