Bid talk buoys Scottish Power

Shares in FTSE 100 utility outfit Scottish Power (in the news for its run-ins with native Indians and its decision to sell PacifiCorp) enjoyed takeover talk inspired strength last month. Dealers say ambitious German utility group Eon has cash to do a deal and wants to become number one in the UK power supply and generation market.

Amid small cap ranks, one of the main stories involved Mike Proffitt’s Renewable Energy Holdings, which floated on AIM with a £10 million February funding. REH has completed its first renewable energy project, with chief executive Proffitt splashing out £33 million on the renewable energy investors’ first wind farm.

The acquisition of Windpark, in Germany, from EDF Energies Nouvelles, will be financed through REH’s cash reserves and debt. Most of the wind turbines will be operational from the end of November, whilst the rest of the capacity will come on stream next July. REH, which floated at 50p, currently trades at 51.5p a share, and Proffitt argues the company is an emerging force in the renewable energy sector.

Utilico Emerging Markets Utilities firmed up by 4.5 per cent to 104.5p on its AIM debut – Arbuthnot Securities raised £52.2 million for the group at 100p a share. As the name suggests, the company is a new exempted, closed-end Bermuda incorporated investment play with an eye on utilities based in emerging markets. The company will focus on the ‘undeveloped and developing’ markets of Asia, Latin America, Africa and emerging Europe.