LONDON, April 27 (Reuters) - Britain's largest energysupplier Centrica has made preparations in case it isapproached with a takeover offer, the utility's chairman said atthe company's annual shareholders' meeting in London.
"Do we have, as a matter of just good governance, anapproach to dealing with potential takeovers? Absolutely we do,"said Centrica Chairman Rick Haythornthwaite on Monday.
He declined to give details of whether the company hadreceived any proposals, but said it was the board's obligationto do what is in the best interest of shareholders. "We have toevaluate any approach on that basis."
The energy sector is ripe for mergers and acquisitions as asharp decline in crude prices has devalued many energy firms, ashighlighted by Shell's $70 billion offer for gasproducer BG.
Centrica, which owns British Gas, could be subject of a moveby a rival as it emerges from a difficult years, some analystsbelieve. The company is carrying out a strategic review,initialised by newly appointed chief executive and former BP-manIain Conn.
Britain's outgoing government has told BP it wants thecompany to remain a British industrial champion and it wouldoppose any takeover of the oil producer, the Financial Timesreported. Conn said the government had not made such a requestto Centrica.
"I think the government are quite satisfied with Centricathe way it is," Conn said.
In February Centrica cut its dividend by 21 percent andwarned that future payouts would be 30 percent lower after thebusiness was hit more strongly than expected by weak energyprices and low demand. (Reporting by Karolin Schaps; Editing by David Holmes)
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