British Energy says in advanced talks
Enlarge imageBy John Bowker
LONDON (Reuters) - Nuclear operator British Energy said on Thursday its long running takeover talks had reached an advanced stage, sending its shares more than 6 percent higher.
The company is in discussions to be bought by Electricite de France, industry sources have said, in a deal that could value the company at more than 11 billion pounds.
"The board confirms it is in advanced discussions with one party. However, there can be no certainty that the discussions will lead to an offer for British Energy," the company said.
A separate industry source said it was hoped a deal would be struck shortly before or just after EDF’s first-half results on August 1, but that the negotiations could be delayed.
EDF declined to comment.
Shares in British Energy closed up 6.2 percent at 729 pence, valuing the company at 11.7 billion pounds -- well above a previous EDF offer rejected by British Energy.
Valuing the company has proven difficult due to the impact of a surge in power prices, although a recent correction may have made an agreement between the parties more likely.
A source close to the discussions said last month that EDF had agreed with Centrica for the British Gas-owner to take a minority stake in the firm should a takeover be agreed. Centrica also declined to comment on Thursday.
British .....continued below
Advertisement starts
Advertisement ends
Energy, 35 percent owned by the government, has attracted takeover interest since Britain gave the green light to new nuclear power stations in January. The company owns eight power stations, all of which have surrounding land suitable for new building.Although British Energy held talks with many of Europe’s largest utilities, only EDF has come through with an offer. Industry sources said Centrica put forward an all-share merger proposal earlier in the year, but it was rejected due to the absence of cash in the offer.
(Reporting by John Bowker; Editing by Paul Bolding and Erica Billingham)
By John Bowker
LONDON (Reuters) - Nuclear operator British Energy said on Thursday its long running takeover talks had reached an advanced stage, sending its shares more than 6 percent higher.
The company is in discussions to be bought by Electricite de France, industry sources have said, in a deal that could value the company at more than 11 billion pounds.
"The board confirms it is in advanced discussions with one party. However, there can be no certainty that the discussions will lead to an offer for British Energy," the company said.
A separate industry source said it was hoped a deal would be struck shortly before or just after EDF’s first-half results on August 1, but that the negotiations could be delayed.
EDF declined to comment.
Shares in British Energy closed up 6.2 percent at 729 pence, valuing the company at 11.7 billion pounds -- well above a previous EDF offer rejected by British Energy.
Valuing the company has proven difficult due to the impact of a surge in power prices, although a recent correction may have made an agreement between the parties more likely.
A source close to the discussions said last month that EDF had agreed with Centrica for the British Gas-owner to take a minority stake in the firm should a takeover be agreed. Centrica also declined to comment on Thursday.
British Energy, 35 percent owned by the government, has attracted takeover interest since Britain gave the green light to new nuclear power stations in January. The company owns eight power stations, all of which have surrounding land suitable for new building.
Although British Energy held talks with many of Europe’s largest utilities, only EDF has come through with an offer. Industry sources said Centrica put forward an all-share merger proposal earlier in the year, but it was rejected due to the absence of cash in the offer.
(Reporting by John Bowker; Editing by Paul Bolding and Erica Billingham)
© 2008 Reuters Click for restrictions
Related Links
Advertisement starts
Advertisement ends
Advertisement starts
Advertisement ends
Weekly quiz
Have you been paying attention? Take our weekly, fun news quiz to test your knowledge of current affairs.
Weather forecasts
Get the 7-day forecast for your region.
Can you spell?
Can you spell better than an undergraduate? Find out in our spelling test.
WAGS
It's not just footballers who get shown the red card. Take a look at some of the WAGS back on the market.
Odd pics
Look back at the week in picture in our special gallery of the weird and wonderful.
Experian Credit Report
Check who's been checking on you with your FREE Experian credit report.Latest Headlines
- Fearful investors in global panic selling
- Pressure on G7 leaders after erratic Wall St. open
- Jury sees CCTV of panic at Glasgow airport
- Distinctive gun killed Rhys Jones
- Armed forces personnel details go missing
- Global mediator wins Nobel Peace Prize
- Foreigners count cost of Icelandic meltdown
- Shot lawyer's family loses legal challenge
- NATO strikes deal for tougher Afghan drug action
- Terry out of England game
