Asia's richest man eyes energy unit

Asia's richest man is reported to be eyeing a potential takeover of United Utilities' electricity distribution business.

Li Ka-shing, who ranked ninth in the Forbes 2007 billionaires list with a estimated fortune of 23 billion US dollars (£11.3bn), is understood to be one of a number of suitors preparing first round offers for the operations, according to the Sunday Telegraph.

The United Utilities business, formerly Norweb, delivers electricity to some 2.2 million customers in north-west England.

Li Ka-shing's Hong-Kong-based conglomerate Hutchison Whampoa, has built up a sizeable UK portfolio, worth around £15 billion, over the last 20 years - making him Asia's biggest investor in Britain.

His investments include names such as mobile phone network 3, health and beauty retailer Superdrug and three of Britain's biggest ports, Felixstowe, Harwich and Cambridge Water.

Last year, the group's listed infrastructure division, Cheung Kong Infrastructure was part of a consortium that dropped out of the race to takeover Thames Water, largely due to concerns over price.

United Utilities began looking at a sale of the electricity business earlier this year, but it is understood that the group is keen to keep hold of the business' operating contract - a move which is expected to put off other electricity networks from bidding.

The electricity business is also said to have generated interest from US utility MidAmerican and the infrastructure funds of JP Morgan, UBS and Australian financial group Macquarie.

United Utilities was not available for comment.

The sale would leave the company with North West Water and a service business that manages other utility assets, while analysts believe that once the group has disposed of its electricity operations it could be open to a potential takeover.