Short circuit for final power grab by GDF Suez

International Power’s independent directors said the 390p a share offer for the 30 per cent not already in the hands of GDF undervalued the business.

The move by GDF comes a year after it took a controlling stake in a new company that combined International Power’s 45 power stations with its own non-European assets.

The new International Power business has six plants in the UK, including the gas-fired station at Saltend, near Hull. GDF Suez UK employs 200 people in Leeds.

Reports said a successful bid was likely to require GDF increasing its offer by at least 15p a share, which would value the 30 per cent stake at about £6.2bn.

The speculation comes after Neil Woodford of Invesco, a long-standing shareholder in International Power, sold a third of his holding at about the 405p a share level, setting a new price benchmark in the process.

GDF said yesterday it considered its offer to be attractive and that it was considering its options.