Iberdrola SA (IBDRF.PK), a Spanish utility company has offered a $22.5 billion buyout offer for Scottish Power PLC (SPI) and they have accepted. The deal would create one of Europe's biggest utilities.
A rival bid is still a possibility due to the the offer being lower than some had expected. The bid was made in a combination of cash and stocks, which Martin Slaney, an analyst for GFT Global Markets states as "convoluting the offer somewhat."
According to the NYTimes.com, the offer translates to 777 pence but speculation on what the offer should have been hovered around 800 pence.
Scottish Power supplies gas and electric services to more than 5.2 million homes and businesses in the United Kingdom, and operates electricity generation and gas storage facilities in Britain, the U.S. and western Canada.
Jack McConnell, first minister of Scotland's regional government, was wary about the merger and said he would seek assurances from the European Union that the takeover would preserve competition.
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