Eon says that it is considering its options re. SPW and SPW says has not received an offer.

Now that SPW can see an end to its American adventure, every Tom, Dick and Harry is probably considering its options regarding taking them over.

But all the press comment that I've seen suggests that the takeover will not come until SPW have completed selling the US unit which might not be until next year. So why all the excitement now?

Or do the words 'press comment' invalidate this entire thinking :-)

still all a bit woolly .......

MADRID (AFX) - Iberdrola SA and Scottish Power PLC could begin 'formal' merger talks today, El Mundo reported, citing unnamed sources close to the deal.
Yesterday, Scottish Power CEO Philip Bowman shed no further light on the situation with Iberdrola, which confirmed last week that it was interested in acquiring the UK firm.
Spanish and British media have reported that Iberdrola would be prepared to offer 800 pence per share, valuing the Scottish company at about 13 bln stg.
According to El Mundo, while the Scottish Power tie-up has never been voted on by Iberdrola's board, the deal has been up for discussion at least on two occasions.
Weekend press reports here said Iberdrola chairman Ignacio Sanchez-Galan has the board's backing.

Am I missing something ?

According to my workings, Iberdrolas bid (albeit shares and cash) for SPW is currently worth around 778 p against a price now of 747 p.

The bid is likely to be completed by April and gives some 4.1 % upside. Now whilst not a stella return over 4 months, and you have the risk, (aside from exchange rate and Iberdrolas share price) of ending up with foreign share to trade, this doesnt seem too bad an arbitrage. (I understand there is also a loan note alternative available)

Particularly as IMHO the market generally is quite toppy, or at least it has got ahead of itself. Whilst waiting for a part shares offer to complete I would hope that a utility, foreign or otherwise, will provide some shelter from this fall.

Is this thinking good, bad or downright ugly :-)