LONDON (Reuters) - Britain's largest energy supplier Centrica (LONDON:CNA) has made preparations in case it is approached with a takeover offer, the utility's chairman said at the company's annual shareholders' meeting in London.
"Do we have, as a matter of just good governance, an approach to dealing with potential takeovers? Absolutely we do," said Centrica Chairman Rick Haythornthwaite on Monday.
He declined to give details of whether the company had received any proposals, but said it was the board's obligation to do what is in the best interest of shareholders. "We have to evaluate any approach on that basis."
The energy sector is ripe for mergers and acquisitions as a sharp decline in crude prices has devalued many energy firms, as highlighted by Shell (LONDON:RDSa)'s $70 billion (£46 billion) offer for gas producer BG.
Centrica, which owns British Gas, could be subject of a move by a rival as it emerges from a difficult years, some analysts believe. The company is carrying out a strategic review, initialised by newly appointed chief executive and former BP-man Iain Conn.
Britain's outgoing government has told BP (LONDON:BP) it wants the company to remain a British industrial champion and it would oppose any takeover of the oil producer, the Financial Times reported. Conn said the government had not made such a request to Centrica.
"I think the government are quite satisfied with Centrica the way it is," Conn said.
In February Centrica cut its dividend by 21 percent and warned that future payouts would be 30 percent lower after the business was hit more strongly than expected by weak energy prices and low demand.