Soaring Innogy nears £3bn deal

INNOGY, the company behind NPower, saw its market value rise £132m as it drew closer to agreeing a £3bn cash offer from German utility RWE. A formal announcement is expected later this week. At 257 3/4p, up 11 3/4p, Innogy is still well under the expected offer of 273p.

Investors are uncertain the duo can pull off the deal. Not only have negotiations been protracted, but some fear the current bid may not win the backing of Innogy's major shareholders.

Invesco, which owns more than 6.5%, says Innogy is worth closer to 300p. Fund manager Neil Woodford says the current bid may undervalue Innogy's Regenesys battery power-storage business. But he will not make up his mind until he has seen a firm offer.

Another big investor says a recommendation from the board will seal the bid, especially with no other suitors on the horizon. He sees Innogy, spun out of the old National Power generating business 19 months ago, dropping to 220p if the deal fails.