Sturgeon writes to Scottish Power chairman:
Company must make statement on proposed takeover |
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Thursday, 17 November 2005 |
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SNP Holyrood Leader Nicola Sturgeon MSP today wrote to Charles
Miller Smith, the Chairman of Scottish Power, to demand that the
company make a public statement on the possible takeover of the company
by E.ON.
Ms Sturgeon used the correspondence to call on the company to recognise
its importance to its employees, customers and the wider Scottish
economy as well as its shareholders.
The full text of the letter is as follows:
Charles Miller Smith
Chairman
Scottish Power
1 Atlantic Quay
Glasgow G2 8SP
17 November 2005
Dear Mr Miller Smith
As you are aware, there has been a keen public interest in the future
of Scottish Power since E.ON indicated an interest in the company in
early September.
As Scotland's largest industrial company and employer of 6,000 people,
Scottish Power is of great importance to the Scottish economy.
We were therefore disappointed last week when Chief Executive Ian
Russell refused to comment on the current talks between Scottish Power
and E.ON.
We fully understand that the Board has an obligation to its
shareholders. However, we are sure you will appreciate that a takeover
of the company would affect the interests, not just of shareholders,
but also of employees, consumers and the country as a whole.
In order that these wider issues can be discussed, we feel that it is
important for Scottish Power to be as open as possible about its
negotiations with E.ON.
You will be aware that the Panel on Takeovers and Mergers has made it
clear that there is no ban on providing information where, as in the
case of E.ON, a possible offer announcement has been made.
Indeed, the Takeover Panel last year stated that:
"The Code Committee is of the opinion... that from shareholders' and
the market's perspective more information about a possible offer must
be presumed preferable to less information."
In light of that, can we request that you as Chairman of Scottish Power
take immediate steps to update shareholders, consumers and employees on
the state of the talks with E.ON?
We look forward to hearing from you.
Yours sincerely
Nicola Sturgeon MSP |
