Iberdrola is preparing to launch its expected £12 billion bid for ScottishPower as early as next week.
The Spanish utility’s executive committee met in Madrid on Tuesday to discuss the offer, which market sources believe could top 800p a share. The part-cash, part-equity bid was understood to be on track after meetings between Iberdrola and ScottishPower last weekend.
After initial reports of discord, Iberdrola’s main shareholders appear to have come together over the offer for ScottishPower. BBK and BBVA, the Spanish banks with representatives on the board on Iberdrola, have given Ignacio Sánchez Galán, Iberdrola’s president, authority to negotiate the deal. Any deal would have to be put to the full board for approval.
Spain’s labour unions have approved of the deal, which would create one of the largest utilities in Europe.