Friday April 11, 11:36 AM
EDF readies British Energy bid worth 11 billion pounds
LONDON (AFP) - French electricity and nuclear power group EDF (Paris: FR0010242511 - news) was assembling a takeover bid for British Energy (LSE: BGY.L - news) worth more than 11 billion pounds (13.7 billion euros, 21.7 billion dollars), The Times reported on Friday.
The daily newspaper, which cited an unnamed source, said that state-owned EDF was drawing up plans for a British Energy takeover bid pitched at more than 700 pence per share.
Investment bank NM Rothschild has been appointed to handle the sale and was preparing to set a deadline for final bids that could fall "within weeks," according to the newspaper's source.
The source added that the sale process was "well advanced" and that due diligence was underway ahead of a potential takeover by July.
British Energy's share price has surged in recent weeks on the back of speculation over a bidding war for the country's biggest power generator.
German power giant RWE (Xetra: 703712 - news) , meanwhile, declined to comment Thursday after the Financial Times reported that it had submitted an indicative all-cash offer worth 11 billion pounds.
Iberdrola (Madrid: IBE.MC - news) of Spain and Germany's E.ON were also interested in British Energy and are following the matter closely, according to recent press reports.
The British government owns a 35.2-percent stake in British Energy, which provides nearly 19 percent of the country's electricity. It (Frankfurt: A0MLX5 - news) owns and operates eight nuclear power stations and one coal-fired power station.
EDF is the biggest producer of nuclear energy in the world.
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