RWE proposes British Energy takeover

Source: Energy Digital

Date :10/04/2008 12:16:37

German electric power and natural gas public utility company RWE has made an offer close to 700p a share for British Energy, which could total upwards of £11 billion.

The takeover bid – initially reported in the Financial Times today – would include a £4 billion payment to the British Government, taking the shape of a contribution to a fund to finance the clean-up of old nuclear sites.

“People close to the situation” have reportedly stated that RWE has been granted access to British Energy’s data room to carry out due diligence.

With less than €5.1 billion net debt at the close of 2007, the FT suggested that the German firm has “ample firepower for a deal.”

Much desired

RWE is not the only company interested in taking over British Energy, with French group EDF having also expressed interest. An estimate by Societe Generale puts the company’s potential bid at a figure of up to 760p per share – or a total of over £12 billion.

Other groups who are believed to be interested in the British power company include Centrica, German company EON and the Spanish Iberdrola.

April 10, 2008