PacifiCorp sale to enterprise still planned

October 13, 2005 By DYLAN DARLING Herald and News

Even if a German company buys the Scottish parent company of PacifiCorp, the Portland-based power company that serves the Klamath Basin likely will still be sold to a Warren Buffett Enterprise.

”One transition won't affect another,“ said Jon Coney, PacifiCorp spokesman.

ScottishPower, based in Glasgow, Scotland, put PacifiCorp up for sale in May, and Warren Buffett's MidAmerican Energy Holdings Company announced it wanted to buy the company. Now, rumor in Europe is that E.ON, a German power company, is interested in buying ScottishPower.

While shareholders have heard through a letter that E.ON possibly is interested in buying ScottishPower, E.ON has not made an offer for the company, said Sally LaBriere, a PacifiCorp regional manager working out of Yreka.

LaBriere said E.ON could be waiting to make an offer for ScottishPower until it sells PacifiCorp.

”There has been some indication that they aren't interested in owning a U.S. business,“ she said.

ScottishPower put out a ”business as usual“ trading statement Monday, while remaining silent on the possibility of a takeover bid by E.ON, according to the Herald, Glasgow's daily newspaper.

The Herald's article, which appeared in the Tuesday online version of the paper, said ScottishPower will be selling PacifiCorp, sooner rather than later.

Before the purchase can be completed, six states need to sign off on the deal. Officials with PacifiCorp and MidAmerican said they expect the deal to be done in March.

Last May, ScottishPower announced its plans to sell PacifiCorp, which led to speculation that ScottishPower could be bought out by larger rivals, such as cash-rich E.ON, the Herald reported.

ScottishPower refused to comment on the situation Monday, according to the Herald, but market expectations are that E.ON will make a move in the next few weeks.