CE Electric, the joint venture company formed by US electricity
generator CalEnergy and construction firm Peter Kiewit Sons, has brought
in Brunswick to advise on its takeover battle for Northern Electric.
Sources suggest the agency, which is providing public affairs advice as
well as financial media relations support, could net as much as pounds 1
million if the bid is successful.
CalEnergy, which is based in Nebraska, announced on Monday that it was
launching a pounds 766 million bid for the north-east’s electricity
supplier. The bid follows CalEnergy’s failure to hammer out an agreed
deal with Northern over the previous week. Northern Electric has
rejected the bid as valuing the company too low.
Brunswick’s appointment was made shortly before the bid was announced.
It was non-competitive and was based on the recommendation of Credit
Suisse First Boston, CE Electric’s financial adviser.
Lucas van Praag, the partner who is leading Brunswick’s four-strong team
on the assignment, said the agency would highlight CalEnergy’s strategy
of developing expertise in electricity distribution as well as
generating.
‘This is about combining skills rather than just a financial
investment,’ he said. Van Praag declined to say how much Brunswick is
being paid.
Northern Electric is being advised by its retained PR consultancy
Financial Dynamics and Lowe Bell Political, which it used against a
failed bid by Trafalgar House in 1994.
