“The Executive Board of Directors considers that the price offered does not adequately reflect the value of EDP and that the premium implicit in the offer is low considering the practice followed in the European utilities market in situations where there has been acquisition of control by the potential buyer,” the statement said.
On Friday, China Three Gorges launched a voluntary takeover bid for EDP, offering 3.26 euros per share, representing a 4.82 percent premium over market value.
In the information filed with CMVM, EDP said it had started internal procedures and will make a statement, “in due time on the other terms of the offer,” that will be communicated to the Executive Board of Directors of EDP when China Three Gorges (Europe) sends it “the project of the prospect which will include the relevant details of the Industrial Project.”
On Monday, financial news agency Bloomberg reported that EDP was preparing to reject the takeover bid on the grounds that the proposed price is low.
CTG, which already owns 23.27 percent of EDP, intends to keep the company headquartered in Portugal and is offering €3.26 per share, or a 4.82 percent premium over the market price, which values the company at around €11.9 billion.
EDP shares closed on Monday up 9.32 percent to €3.40.