French on brink of nuclear deal

A £10billion deal for Britain’s largest nuclear power generator, British Energy, could be completed in the next fortnight.

British energy is led by chief executive Bill Coley British energy is led by chief executive Bill Coley

French group EDF is in advanced talks to do the deal, having made an indicative offer of between 680p to 700p a share.

 

It has begun fundraising to finance a formal offer, and is thought to be looking to borrow about £11.5billion. The Government owns 35 per cent of British Energy, led by chief executive Bill Coley, and may hold off in the hope of a better offer from German group RWE or the Spanish owner of Scottish Power, Iberdrola.

But indicative offers from these companies are felt to be unlikely. Shares in British Energy closed at 735p on Friday, well above EDF’s bid price.

British Gas owner Centrica wants to strike a deal to take power from whoever wins, to broaden its sources of energy.

Business Secretary John Hutton will host a summit in London this week to encourage companies to become involved in building nuclear power stations.

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