Friday May 16, 11:27 AM
British Energy receives at least two offers for company
LONDON (Thomson Financial) - British Energy Group said it has received at least two offers for the company and sources close to the deal said these include offers from EdF (Paris: FR0010242511 - news) and Iberdrola SA (Madrid: IBE.MC - news) .
The comments follow an announcement from British Energy Friday saying that it has received some offers over and above its closing share price on Thursday of 680 pence per share.
Iberdola declined to comment and EdF was not immediately available for comment, though both are said to be interested in a full bid for British Energy (LSE: BGY.L - news) which would include taking the UK government's 35 percent stake.
Centrica Plc has also made an all share proposal valuing the company at more than 680 pence per share, one source said, though an all cash offer from another European counterpart seems more likely to succeed.
Centrica (LSE: CNA.L - news) is in talks with both Iberdrola and EdF about a possible power offtake contract from the new company should either bid prove successful, the source said. Centrica declined to comment.
Suez (Paris: FR0000120529 - news) and RWE AG (Xetra: 703712 - news) have also declined to comment on their reported interest in the company.
On March 17, British Energy said it was in discussions with other companies which could lead to a business combination or a bid offer.
Interest in the UK nuclear sector follows the government's decision to go ahead with further nuclear development, announced in its energy white paper published earlier this year. British Energy owns most of the existing nuclear sites in the UK where any new reactors are likely to be built.
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