Continental bid for British Energy
Continental bid for British Energy
2008-04-07Newsfeed
EDF and RWE are reported to be leading a clutch of power firms courting British Gas owner Centrica over a possible £10bn-plus joint bid for British Energy.
EDF and RWE are reported to be leading a clutch of power firms courting British Gas owner Centrica over a possible £10bn-plus joint bid for British Energy.
It is thought the firms want to take control of BE, which operates all Britain's nuclear power stations and is expected to play a major role in the planned development of the next generation of nuclear power supply.
Centrica is believed to have been keen to bid on its own, but it has been held back by a lack of financial firepower and falling share price.
It is now being approached by European firms as Centrica's involvement would water down criticisms of strategic industries going to foreign owners.
And the firm is reported by the Sunday Telegraph to have started talks with EDF about "a British-led solution" over the future of British Energy.
A proposal would involve buying the Government's 35% holding as well as the company's listed majority stake.
Centrica's lack of expertise in the nuclear industry along with its financial hardship may encourage the Government to consider an approach from EDF.
EDF operates 19 nuclear sites in France which supply more than 80% of the country's power needs.
Copyright © The Press Association 2008
