A MERGER between UK energy firm International Power and France’s state-controlled power giant GDF Suez collapsed last night after the two failed to strike a deal.
International Power saw an early surge in share price – up eight per cent yesterday morning – reversed as it ended the day as the FTSE 100’s biggest faller, down 7.10p to 326.7p.
An International Power spokesman said: “We confirm the company has held preliminary discussions regarding a potential combination of International Power and certain power assets of GDF Suez.
“No agreement was reached between International Power and GDF Suez and discussions are no longer ongoing.”
The French firm also confirmed discussions were closed. It said the two companies had been looking at an asset swap that involved no cash.
GDF Suez is believed to have appointed Rothschild, BNP Paribas and Goldman Sachs to advise on the deal before its collapse.
GDF Suez is said to have €12bn (£10.6bn) in cash at its disposal, leading some shareholders to push for more aggressive expansion.