Share slump baffles ScotPower

By THIS IS MONEY
Updated:

 

SCOTTISH Power was forced to rush out a statement reassuring investors after rumours of accounting problems at its US business hammered the stock in the final minutes of trade, stripping £560m from ScotPower's market value.

The group, which last month reported the biggest loss so far by a privatised UK energy company, said trading was in line with its expectations. 'Scottish Power has noted a sharp fall in its share price and knows of no reason to have caused this.'

Trading at 380 1/2p earlier in the session, the stock ended down 30 1/2p or 8.2% at 342p, a nine-month low. Dealers reported a sharp reversal in the shares in the last minutes of trading. 'There are a lot of spooky stories doing the rounds on all sorts of companies. Whether it is true or not, it is hitting the market (in Scottish Power),' another market watcher said.

ScotPower plunged £1bn into the red in its final quarter, hit by heavy one-off costs. The US business PacifiCorp was caught out by the power crisis last summer in California. At the time of the results, chief executive Ian Russell promised 'no more nasties'.

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