LONDON, June 15 (Reuters) - Activist firm Shareholder Value Management (SVM) has bought a 2 percent stake in EDP Renovaveis , the renewables business of EDP-Energias de Portugal , which is the target of a takeover bid from China Three Gorges.
SVM said that along with other minority shareholders it proposed a candidate for the board of the wind energy company, saying it hoped to achieve “significant value creation for all shareholders”, adding its investment was long-term.
SVM said it had purchased 17.6 million shares and proposed the election of corporate lawyer Alejandro Fernandez de Araoz to the board of directors. EDPR shareholders will discuss the request at their meeting on June 27.
State-owned China Three Gorges last month launched a 9 billion euro ($10.4 billion) bid to take over both EDP and EDPR, offering 3.26 euros a share and 7.33 euros a share respectively - both of which were rejected by the Portuguese utility for not reflecting the value of the company.
EDP has signalled it is open to an improved offer and said the strategic intentions in the takeover plan, such as maintaining EDP’s Portuguese identity and contributing some overseas China Three Gorges’ assets to EDP, had some merit.
Both EDP and EDPR shares are trading above the offer price, suggesting that investors expect a higher or a rival bid. Both were flat in afternoon trading on Friday, at 3.40 euros and 8.36 euros, respectively. ($1 = 0.8625 euros) (Reporting by Maiya Keidan in London and Andrei Khalip in Lisbon; editing by Louise Heavens)