Hyder in takeover talks

By THIS IS MONEY
Updated:

 

Utility company Hyder today said it was in talks which could lead to an offer being made for the company.

The Cardiff-based company, currently valued at about £435 million, said it was in talks with a number of parties about a range of strategic options, which included the possibility of an offer for the whole group. These negotiations were at varying stages of development.

'Hyder is actively developing these discussions so that the board can decide which course of action produces the greatest shareholder value,' the group said. Shares in the group gushed 50% on the announcement - adding 93 3/4 p to 283p.

The group had said last December it was conducting a 'review of strategic options', as it announced a 31% fall in first-half year profits. Hyder had also said at the time it would slice jobs by 1,000, bringing its staff numbers down to 4,200. The announcement had come after tough new targets imposed by regulators to cut water and electricity prices.

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