May 14, 2018 / 7:45 AM / a year ago

Portugal's EDP jumps 10 pct after China bid

PARIS, May 14 (Reuters) - Shares in Portugal’s leading utility EDP jumped more than 10 percent in early trade on Monday, well above the bid price offered by Chinese state-owned utility China Three Gorges (CTG) on Friday, indicating that the market believes there could be a counter bid or a higher Chinese offer.

EDP shares traded around 3.43 euros, above CTG’s 3.26 euros per share bid, which offered a premium of just below 5 percent on the power firm’s Friday closing price.

It values the proposed deal at 9.07 billion euros ($10.83 billion), excluding the 23 percent stake CTG already owns.

CTG and another Chinese state company, CNIC, together hold 28.25 percent of EDP shares.

Several funds also hold major stakes, including Capital Research with 12 percent, Masaveu Herrero with 7.19 percent, Blackrock with 5 percent, Mudabala Investment with 4.06 percent and Capital World with 2.69 percent, ThomsonReuters data show.

The Qatar Investment Authority and Norges Bank Investment Management, two major sovereign wealth funds, each hold more than two percent.

Portuguese Prime Minister Antonio Costa told reporters on Friday his government had no objections to the bid, but the fund shareholders so far have made no comment. (Reporting by Geert De Clercq; editing by Jason Neely)

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