Germany’s E.On, the group which already owns PowerGen, is preparing to make a bid for UK utility Scottish Power.

E.On has confirmed that it is considering making an offer for the group, a cash offer that has been speculatively put at around £11 billion ($19 billion).

E.On has noted the very strong rise in Scottish Power’s share price since the group announced its intended disposal of underperforming US utility group PacifiCorp to MidAmerican for $9.4 billion. Eon considers that the price in Scottish Power shares rise reflects a substantial element of bid speculation.

Analysts suggest that a unified PowerGen and Scottish Power entity would make commercial sense, although both E.On and Scottish Power have confirmed that no approach has been made to the board of Scottish Power. E.On adds that there can be no assurance that a transaction will ultimately be forthcoming.