EDP shares rise after rumour of French bid

edpFrench business news channel, BFM, today posted on its website that Portugal’s EDP is being examined by France’s Engie, with a full bid in the offing.
Engie said it had no comment to make and EDP has release a statement that “no contacts have been established, nor have there been any negotiations with a view to consolidating operations.”
EDP shares bounced up nearly 4% on the rumour, with Engie’s share price dropping 0.4%.  At current share prices, Engie is valued at €33 billion and EDP at just under €12 billion.
EDP is controlled by the China Three Gorges (Europe),* which has been stake building and now accounts for 26.27% of the formerly State-owned business. Other significant shareholders are China Ningbo International Cooperation, Capital Group Companies, Inc. and US behemoth investment fund, Blackrock.
Foreign companies control 40% of EDP's shares with China Three gorges also holding a stake in EDP subsidiary, EDP Renewables. 
Engie’s new chairman Jean-Pierre Clamadieu said in February that the company should look at acquisition opportunities after a three-year transformation plan was finished ahead of schedule and the company was back in profit after two years of losses.
* China Three Gorges (Europe), S.A. is fully owned by China Three Gorges (Hong Kong) Co. Ltd , which is fully owned by CWE Investment Co. Ltd.
China Three Gorges Corporation directly holds 100% equity of CWE Investment Co. Ltd.
China Three Gorges Corporation is in turn fully owned by People Republic of China.
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