Hyder backs US bidder

Hyder Plc is understood to have swapped allegiances in a takeover battle for the company and backed a £526m offer ($791.2m) from Western Power Distribution (WPD).

Hyder - which last week withdrew a similar recommendation for an earlier bid by Japanese bank Nomura - said its board had unanimously backed WPD's new, higher offer of 340 pence per share.

Nomura's bid of 320p was trumped by WPD last week.

Hyder faces difficulties in servicing its net debt of about £1.8bn, but the bidders covet its low-risk assets.

Earlier, Hyder told its shareholders they should take no action for now over rival offers from Japanese bank Nomura and Western Power.

Sale of Welsh Water would clear Hyder's debts

Nomura said it would "consider its position" before tabling a higher bid for the Welsh utility group Hyder.

Meanwhile, Assembly First Secretary Rhodri Morgan has called for a swift end to the takeover saga to give Hyder's workers peace of mind.

Mr Morgan said Hyder's 10,000 workers "desperately" wanted to know how the three-month long takeover battle would end.

"This should not be allowed to deteriorate into a merry-go-round," he said.

Nomura's latest offer of £3.20 a share was trumped by American-owned Western Power, which has offered £3.40.

Nomura is thought to be awaiting a decision by the government on whether to refer Western's bid to the Competition Commission before raising its offer again.

Job Concerns: First Secretary Rhodri Morgan

But WPD's plans for the Welsh Water arm of Hyder are strongly opposed by the trade unions and the National Assembly.

They want to hand over management control of the water division to Cheshire-based United utilities.

No other water company has entered into such an arrangement - and the authorities have the power to block it.

Hyder's directors had unanimously backed the latest Nomura offer, with the Japanese company the favourites of Hyder's top executives to take over the ailing water and electricity group.

But their original offer of £2.60 was trumped by a higher bid from American-owned Western Power.

Now it also faces competition from Glas Cymru - a new company attempting to buy Welsh Water from Hyder for £1.7bn.

That is being led by two Welsh Water executives Nigel Annett and Chris Jones.

Nomura believed it had regained the initiative with its latest offer.

But that is bad news for Glas Cymru which needed the directors support if it was to succeed.