NEWS: FD advises both sides in electricity takeover

Financial Dynamics is acting as PR adviser to both sides of an agreed bid after being hired by both Central and South West Corporation and Seeboard last Friday.

Financial Dynamics is acting as PR adviser to both sides of an agreed

bid after being hired by both Central and South West Corporation and

Seeboard last Friday.



FD chief executive, Nick Miles said the highly unusual arrangement was

prompted by the need for secrecy. Regional electricity board Seeboard

had agreed to accept US bidder Central and South West Corporation’s

pounds 1.6 billion offer, but it was feared other suitors were in the

wings. ‘They hired us to keep the deal under wraps,’ he said.



The agency is reporting directly to Jeremy Miller, the former director

of Gavin Anderson who was seconded to work for Seeboard last month (PR

Week, 27 October).



Miles declined to give details of the fee, but said: ‘You can assume

it’s in six figures. There’ll also hopefully be a success element.’



C&SW appointed Burson-Marsteller in September to advise it on a joint

bid for another electricity board, Norweb, along with Brunswick client

Houston Industries. That bid failed when North West Water raised its own

bid for the company, and B-M is not involved in the Seeboard bid.



The agency faces a potentially irreconcilable conflict of interest

should a rival bidder emerge. In such a situation, said Miles, ‘we have

an understanding with both sides.’



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