Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Brazil's presidential election seen from the web

Read more

WEB NEWS

Ivory Coast launches the "Soap Bucket Challenge"

Read more

#TECH 24

Anonymous Vs ISIS

Read more

AFRICA NEWS

Ebola virus: US to send 3,000 troops to West Africa

Read more

AFRICA NEWS

Nigeria attack: Bomb blast in college in Kano

Read more

AFRICA NEWS

Ebola: Lockdown brings Sierra Leone capital to a halt

Read more

MEDIAWATCH

Sarkozy's political comeback: did he ever leave?

Read more

DEBATE

The World This Week

Read more

FRANCE IN FOCUS

Travel chaos: Air France pilots take industrial action

Read more

EDF finds opponents in the race to buy British Energy

Latest update : 2008-05-16

British nuclear group British Energy announced on Friday it received several offers, contradicting the British press who said French energy group EDF's bid was the only one. Spain's Iberdrola and Germany's RWE are also interested.

 

LONDON - British nuclear power generator British Energy said it has received a range of takeover proposals, including some priced above Thursday's closing share price of 680 pence per share, sending its shares higher.

 

The stock was up 5.6 percent at 718 pence per share by 0802 GMT, valuing it around 11.4 billion pounds ($22.19 billion) including the UK government's 35 percent stake.

 

British Energy said on Friday it had received a range of proposals from several parties wishing to make a full offer for the company including the Nuclear Liabilities Fund, which represents the government stake.

 

The company operates eight nuclear power stations and is the key player in a government drive towards more nuclear power to solve a predicted electricity supply shortfall.

 

Its shares had declined 13 percent before Friday from a 785p all-time high on April 25 as hopes of a bidding war at a significant premium to its share price faded.

 

"The weakness in the price has been because people thought it would only be EDF (that made a bid)," said analyst Lakis Athanasiou at broker Evolution Securities.

"The key today is there are a number of players," he said.

 

Germany's RWE, Spain's Ibderdrola, France's Suez, Britain's Centrica, Scottish and Southern Energy and Germany's E.ON, owner of Britain's Powergen, could be behind the bids, Athanasiou said.

 

The process of evaluating the proposals is likely to take a number of weeks, British Energy said.

 

"It is clear that the press speculation that only EDF had made a bid, with some reports putting the bid as low as 650p, was misleading and contributed to price weakness in recent days," Athanasiou said.

 

Britain's biggest gas supplier Centrica and utility EDF were prepared to make offers at less than 700p/share, sources familiar with the matter told Reuters last week.

 

Centrica made an all-share indicative offer at under 700p/share, a source told Reuters last week.

 

"The board has reviewed the proposals and has decided that discussions should continue with all the parties concerned," said British Energy.

 

Spain's Iberdrola is also interested, an industry source told Reuters last week.

Date created : 2008-05-16

COMMENT(S)