GDF and IP set to confirm deal

FRENCH utility GDF Suez and International Power are set to announce they have struck a deal on a planned asset tie-up this morning.

GDF will pay a cash dividend of about 90p a share to International Power shareholders as part of a reverse takeover, after talks were revived in July. The enlarged firm will generate annual sales of €13.5bn (£11.2bn). Under the deal, GDF will inject its non-European power generation businesses into International Power, as well as assets in the UK and Turkey, in return for a majority stake in a new UK-quoted vehicle.