French energy group EDF is still in talks with British Energy about a takeover and the British government supports a deal between the two companies, a government spokesman said Monday.

"The secretary of state said on Friday the EDF deal would have been a good fit," said a spokesman at the British industry ministry, referring to Industry Minister John Hutton.

"That remains our view and the parties are still in discussions," he added.

EDF, Europe's number one electricity producer, had been widely expected last week to confirm that a deal had been struck to buy British Energy, which has a market value of 12 billion pounds (15.5 billion euros, 24 billion dollars).

But EDF chairman and chief executive Pierre Gadonneix said Friday that "financial conditions" had not yet been met for the acquisition of the group, which operates Britain's nuclear power stations.

The offer was aimed at the British government's 35.2 percent stake in British Energy. Under takeover rules, any bid for the government stake would trigger an offer for the rest of group.

"Our clear preference is for a business with experience of new nuclear build," said the government spokesman. State-controlled EDF is the operator of France's vast network of nuclear power stations.

British electricity and gas supplier Centrica said Monday it was in talks with a "third party," thought to be French utility giant EDF, over a deal in which it would take a minority stake in British Energy.

Centrica also said it might consider a merger with British Energy itself.