British Energy still in talks with potential bidder

Source: Exec Digital UK

Date :13/08/2008 09:31:03

British Energy, which has been at the centre of intense takeover speculation for several months, has said today, August 13, that it remains in advanced talks with a potential bidder.

BE did not name its suitor, but many rumours have circultated that EDF is the most likely pursuer.

Two weeks ago, EDF and British Energy came close to agreeing terms but the move collapsed when key shareholders said a 765p bid would not be enough.

This threw the Government's plans to construct a new generation of nuclear power stations into confusion.

"As we continue discussions in respect of a potential transaction, we remain clear that the expertise of our people, together with our sites, makes British Energy uniquely positioned to play a pivotal role in nuclear new build," British Energy’s chief executive Bill Coley (pictured) said.

Though EDF has always been the front -runner in the race for British Energy, Centrica, the parent company of British Gas, is keen to play a role.

It has held talks with EDF about taking a 25 percent stake in British Energy in the wake of a successful bid and has also said it could look at a proposal of its own if no one else made an offer.

Separately, the nuclear operator announced profits dropped more than 60 percent in the three months to June from £179 million to £62 million.

The group said the fall was due to lower output.