German utility giant E.ON has revealed that it has ended its interest in taking over UK power provider ScottishPower after the latter rejected its final purchase proposal.
In a statement E.ON said that it would not be making an offer for ScottishPower and discussions have ceased as a result of the Glasgow based energy company deciding not to take E.ON’s proposal forward, recommend the proposal to its shareholders nor grant E.ON due diligence access.
E.ON’s purchase proposal offered 570 pence per ScottishPower share, valuing the whole of the firm at approximately GBP11.3 billion. ScottishPower, which is believed to have wanted at least GBP12 billion, said it rejected the offer having concluded that the proposal did not reflect the fair value for its current business and future prospects.
Commenting on the deal breakdown, Dr. Wulf Bernotat, chairman of E.ON, said: We are surprised and disappointed that ScottishPower has chosen to react to our proposal in this way. We had worked hard to put forward a proposal that would have been fair and attractive to the shareholders of both ScottishPower and E.ON. There is a compelling industrial logic to a combination of E.ON’s UK business with ScottishPower; it would have been good for customers and shareholders alike.