National Grid unlikely to table a bid for ITC Holdings

A bid from National Grid for US electricity-transmission company ITC Holdings Corp.is unlikely according to the Financial Times's Alphaville blog.

According to a report published on Monday, the American outfit was working with financial advisers to seek potential buyers.

The news sent ITC stock 9.27% higher to $36.88 by the close of trading after registering the largest intra-day jump in a decade.

National Grid and Spain's Iberdrola were among the firms which were said to be considering an acquisition.

However, while Alphaville was confident that National Grid was indeed participating in the process - which had kicked off a week ago - it's balance sheet and the fact that National Grid has only just appointed a new chief executive officer did not make an approximately $7bn deal "look very easy".

"So. If National Grid's involved ... It's much more likely to be in there to look at the numbers of a rival, rather than to launch an offer," Alphaville said.

As of 13:19 shares in National Grid were higher by 0.54% to 931.6p.