PacifiCorp Won’t Top Bid for Energy Group

The lengthy battle between U.S. utilities PacifiCorp and Texas Utilities Co. for British power company Energy Group ended as PacifiCorp said it would not raise its offer. Portland, Ore.-based PacifiCorp said it is keeping its offer at about $7.2 billion; Dallas-based Texas Utilities is offering about $7.4 billion. British regulators had called for both U.S. companies to submit sealed bids by today, but PacifiCorp’s decision means that the unusual process would be avoided. Energy Group’s American depositary receipts fell $1.75 to close at $56.31 on the New York Stock Exchange as hopes for a higher bid evaporated. PacifiCorp said its offer represented “a full price,” and Chief Executive Fred Buckman said the company did not see “acceptable financial returns” above that price. As part of its bid, Texas Utilities has agreed to sell Energy Group unit Peabody Coal to bankers Lehman Bros. to avoid U.S. regulatory problems. On the NYSE, Texas Utilities shares rose 94 cents to close at $40, and PacifiCorp rose 56 cents to close at $23.13.