Hyder takeover bidding row

The deadline day for sealed bids to decide the winner of the battle to take over Welsh utility Hyder Plc has descended into a legal row between rival bidders.

Japanese bank Nomura and Western Power Distribution submitted their final bids to the Takeover Panel in London, after four months of uncertainty.

Earlier on Friday, Western Power submitted a sealed bid valuing Hyder at 365p per share.

Nomura did not, it appears, provide another offer and relied on its previous bid of 360p per share.

Sale of Welsh Water would clear Hyder's debts

It is thought that Nomura's lawyers are claiming that under the rules of the sealed bid procedure, WP's higher offer should have been announced to the stock exchange before the close of trading at 1630BST.

That did not happen and so Nomura are said to be claiming that their higher offer stands and they have won.

The Takeover Panel said they expect no more announcements on the situation on Friday and the position remains as confused as ever.

The four month battle for control of the Welsh utility company Hyder was expected to end dramatically with the submission of sealed bids.

Panel intervention

The highest offer should have won the day to take control of Wales's biggest company and its 9,000 staff.

The battle for Hyder came to resemble a poker game with billions of pounds at stake.

The panel said it was intervening in the takeover battle to provide an orderly framework for Friday, the last day for submitting a revised offer.

On Wednesday, Hyder shareholders saw a jump in stock value on the markets after Japanese investment bank Nomura put in an improved £557m bid for the debt-ridden Welsh utilities group.

The battle between Nomura and US-controlled group Western Power Distribution has now seen shareholders' stakes almost double in value over the last four-and-a-half months.

Our commitment is there to keep the group together and grow the business from Wales

Mike Kinski, Nomura

Nomura spokesman Mike Kinski said he hoped the company's latest offer would seal the deal.

"I think the offer is fair value and attractive to all stakeholders," he said.

"Our commitment is there to keep the group together and grow the business from Wales and we are very keen to get the position settled."

Before Nomura's first bid at the end of March, Hyder shares were languishing at 189¼p but Wednesday's bid by WPD equates to 360p a share.

The bid values Hyder at £2.37bn, including debt of £1.8bn.