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SSE rules itself out of EDF bid

City A.M. Reporter
SCOTTISH & Southern Energy (SSE) yesterday backed down from seeking a major stake in the UK networks being sold by France’s EDF after ruling out raising equity to finance any bid.

“We have always maintained a highly disciplined approach to acquisitions, investment and to financial management generally, and that will continue,” finance director Gregor Alexander said in a statement.

The British utility said, however, it would still work with partner Borealis Infrastructure on a deal that could potentially give it a small interest in the networks.

The statement from SSE could hand the advantage to two rival bidders – Hong Kong’s Cheung Kong Infrastructure Holding and an international consortium of Australia’s Macquarie, Canada Pension Plan and the Abu Dhabi Investment Authority.

Analysts expect a sale would raise at least £4bn for the French firm, which expects firm offers by 21 June.