Take-over battle begins for Hyder

A struggle is developing for control of the troubled Welsh utility company Hyder Plc.

Hyder has confirmed it has received a second approach from an American-led consortium.

The Japanese bank Nomura had been expected to buy Hyder in a straightforward take-over deal that would see the company keep its name and remain based in Cardiff.

But a second approach has been made by a consortium led by the US group Western Power Distribution which already owns the former South West Electricity Board (SWEB).

Hyder: Wales' biggest private firm

The American firm has not put a value on its all-cash bid approach, but it is believed to trump a £402m take-over offer already on the table from Nomura.

It is believed that WPD plans to keep the SWALEC electricity distribution system and pass on Welsh Water to the English company United Utilities.

That would effectively mean the break-up of Hyder and would almost certainly be bad news for jobs in Wales.

WPD was created last year and distributes electricity to 1.4 million customers from Bristol to Bath and also includes Exeter and Plymouth.

Nomura's deal includes taking on Hyder's debts of £1.9bn and introducing a new chief executive, Mike Kinski at the helm.

A former Stagecoach transport company chief, Mr Kinski earned the nickname "Killer Kinski" after having presided over massive job cuts at Scottish Power earlier in his career.

Nomura is also believed to have made a bid for Associated British Ports which owns 23 sites in the UK including Grimsby, Hull, Southampton, Cardiff, Plymouth and Ipswich.

But ABP rejected the bid on Tuesday saying after telling investors that the potential offer was too low.