Two enter bidding for Innogy

SHARES in Innogy, the company behind the NPower household energy brand, soared to a new high as potential bidders for the business broke cover.

As it emerged that giant German multi-utility RWE, owner of Thames Water, and Scottish Power have both approached Innogy in recent weeks, shares in the company leapt by as much as 22% before settling back at 254 3/4p for a rise of 44 1/2p. That values the company's equity at £2.8bn and puts a tag of £5.2bn on the group, including debt.

Innogy was spun out of the old National Power generating business 18 months ago at 165p, and has quickly become the country's biggest domestic electricity supplier, with 5m customers after the acquisition of the retail businesses of Yorkshire Electricity and Northern Electric.

It is also Britain's second biggest domestic gas supplier, with 1.8m customers, behind British Gas group Centrica.