Monday, 21 February 2011

Feb 17 (Reuters) - Power Assets Holdings Ltd (0006.HK) is considering a 3.5 billion pound ($5.6 billion) bid for British power network assets of Germany's E.ON AG's (EONGn.DE) (EONG.AS), although no decision has been made, local newspapers reported on Thursday.

The company, part of the business empire of tycoon Li Ka-shing, changed its name from Hongkong Electric Holdings Ltd on Wednesday to reflect the growing importance of its overseas business, including a stake in Britain's second-largest power grid.

Managing director Tso Kai-sum said the company, controlled by Cheung Kong Infrastructure Holdings Ltd (CKI) (1038.HK), "was studying bidding documents", the South China Morning Post reported.

Tso declined to say whether it would team up with CKI to bid for the assets. Power Assets and CKI are both under Li's ports-to-telecoms conglomerate Hutchison Whampoa Ltd (0013.HK). They teamed up last year to buy EDF Energy. Plc's (EDF.PA) British network for 5.775 billion pounds.

Li was one of more than two bidders still in the race for the asset and E.ON was keen to complete the transaction in the first quarter, a source familiar with the deal told Reuters last month. [ID:nTOE70N024] (Reporting by Alison Leung; Editing by Chris Lewis)

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