Has British Energy agreed to EDF takeover?

Source: Exec Digital UK

Date :25/07/2008 09:30:46

French utility EDF set to take over nuclear operator British Energy for around 775 pence per share, according to a source briefed on the matter.

British Energy has reportedly confirmed it is in advanced discussions with one party, but there is no certainty the discussions will lead to an offer being made.

That party is thought to be Electricite de France, which is looking to agree a deal with Centrica to take a minority stake in the company.

Although the terms have yet to be decided, the offer would value British Energy at £12.4 billion.

Its shares closed up 6.2 percent at 729p yesterday, July 24, valuing the company at £11.7 billion.

British Energy has attracted takeover interest since Britain gave the green light to new nuclear power stations in January.

A previous EDF offer, made in June, was rejected by British Energy.