UK - ENERGY
EDF set for sweeping move in the UK
Friday 09 May 2008
French energy giant EDF is tipped to secure a majority stake in Britain's top electricity producer British Energy and has reportedly begun to acquire land intended for the construction of new nuclear power plants.
Friday 09 May 2008
By FRANCE 24 with AFPState-owned French power company EDF, in the running for a stake in British Energy, has bought land near two existing nuclear sites in England and Wales, the Financial Times said Friday.
The business daily said the firm had acquired land near Wylfa on the island of Anglesey, north Wales, and Hinckley Point, in the county of Somerset, southwest England.
It assessed that the "stealthy purchases" could allow it to build up to three new atomic power stations, regardless of whether it is successful in its bid for British Energy.
Friday is the deadline for bids for the British government's 35.2 percent stake in British Energy, which provides nearly 19 percent of the country's electricity. It also owns and operates eight nuclear power stations.
Britain's Centrica, German power giants RWE and E.ON plus Spain's Iberdola are also said to be among the likely bidders.
The Daily Telegraph said Friday that EDF and its advisers, Merril Lynch, were putting together a pitch worth between 9.2 billion pounds (11.7 billion euros, 18 billion dollars) and 10.2 billion pounds.
"EDF is seen as the hot favourite in this case", said FRANCE 24 business reporter Ruben Easey. "France has the most developed nuclear industry in Europe and Gordon Brown has announced that he wants an enormous expansion of nuclear energy in the UK," he added.
The British government approved a new generation of nuclear power stations in January this year, signalling that they were likely to be built on or near existing sites primarily by private firms.
The Financial Times described EDF's acquisition of the land as "a move of strategic audacity" which "positioned itself to take a leading role in Britain's nuclear future irrespective of what happens to British Energy".
It noted that planning disputes with local residents were likely but the land could end up being worth hundreds of millions of pounds (euros, dollars).
"EDF still has a long way to go before it could build on any of the land it has bought. But the land deals will be another reason for it to argue that a price above 700 pence for British Energy is unrealistic," the newspaper added.
10/05/2008
England Will Be Well-served
By Arlyn H. Lichthardt
As a very satisfied customer and share-holder of EDF, I can assure my English neighbors that they will be well-served if EDF wins the bid. The company's management is astute, professional and sensitive to the concerns of its employees and customers; it has an outstanding safety record and the most advanced engineering and technology in the industry.