Scottish Power is a major player in the UK energy market

Jack McConnell said he hoped the Glasgow-based firm would keep its Scottish headquarters but stopped short of publicly opposing a buyout.

The pressure came in the first question time of the new parliamentary session.

The German utility E.On, which owns the Powergen brand in the UK, confirmed last week that it is considering a takeover bid for the energy utility.

Recent changes

Scottish National Party Holyrood leader Nicola Sturgeon said a takeover bid for Scottish Power should be resisted as "strongly and vocally" as the attempted takeover of the Royal Bank of Scotland in the 1990s.

The first minister said: "I would certainly hope that they will remain not just headquartered here in Scotland but very much in control of their own affairs here in Scotland."

"They have our full support in doing that, and I am discussing today with the chief executive of Scottish Power the steps he is going to take to ensure that happens."

Ms Sturgeon said the loss of headquarter functions would be the "inevitable consequence" of a foreign takeover, and the jobs of 7,500 people would be on the line.

Will the First Minister show some resolve, some explicit plain-speaking resolve, and stand up for the Scottish national interest? Nicola Sturgeon SNP

She said: "Will the first minister show some resolve, some explicit plain-speaking resolve, and stand up for the Scottish national interest?"

Mr McConnell said: "No - I am absolutely not going to get into this weak Nationalist nonsense - that in some way, we in Scotland could close our borders and only consider what happens inside our own small economy."

Also during first minister's questions, Scottish Conservative leader David McLetchie asked Mr McConnell why the executive was reforming the school board system, set up by the last Conservative Government.

He said 97% of secondary and 88% of primary schools already had them and had they had proven to be one of the "great success stories in Scottish education".

Plans for greater parent power in running schools would give parent bodies the legal right to request an HMIE inspection in certain cases.

The Parental Involvement Bill will also place a duty on every head teacher to provide a report at least once a year to parents.

'Appropriate costs'

Mr McConnell said that the old regime had been designed to encourage schools to opt out of the local comprehensive system.

"That has failed," he said.

"What we want to have is a far better system - a system that gives parents themselves the chance to design their own involvement, their own participation in the life of the school - but with real obligations."

Independent MSP Margo MacDonald asked if the executive would pick up the �3m cost incurred by Edinburgh during and after the G8 summit.

Mr McConnell told her they were committed to "reimbursing appropriate costs" and said they would have their expenses met once they had submitted detailed and justifiable figures.