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EDF, Centrica to buy British Energy: reports
London (AFP) July 24, 2008 French energy giant EDF and Centrica will buy British Energy for about 12 billion pounds (15.2 billion euros, 23.9 billion dollars) and could announce the deal early next week, reports said Thursday. In reaction, nuclear power operator British Energy confirmed it was in "advanced" talks with one unnamed party. Both Centrica and EDF declined to comment. The Times newspaper and the BBC reported on Thursday that EDF and Centrica were edging closer to clinching the takeover. "We hope it will be done in the next few days," an executive close to the companies was quoted as saying on the BBC's news website, which added that the deal was not yet finalised and could still be delayed. The Times, citing an adviser close to the matter, said that the deal could be sealed by the end of the month. British Energy said in a statement: "The board ... notes the recent speculation about the status of its talks with third parties. "The board confirms that it is in advanced discussions with one party. "However, there can be no certainty that the discussions will lead to an offer being made for British Energy." According to both media reports, Centrica was in negotiations with EDF to be a minority partner in the acquisition and could pay around 3.0 billion pounds for a 25 percent holding in the company. Such a move could allay worries about the prized energy asset falling completely under French control. If EDF buys the government's 35.2 percent stake in British Energy, it would have to make a full offer for the rest of group under British takeover rules. Centrica owns British Gas, which is the country's largest supplier of gas to homes. British Energy's management wants EDF to pay more than 750 pence per share, the reports added. The group rejected EDF's offer of 680 pence in May. In late afternoon trading on Thursday, British Energy shares jumped 6.41 percent to 730 pence on London's FTSE 100 leading shares index, which was down 1.38 percent. British Energy provides almost one fifth of Britain's electricity and owns and operates eight nuclear power stations. French state-owned group EDF has been widely regarded for some time by analysts as the favourite to buy the group. German power giant RWE and Spanish group Iberdrola have both ruled themselves out of a move. Last month, British Energy said that a series of takeover proposals received from unnamed parties had undervalued the company. EDF is the former state electricity monopoly in France and the leading producer of nuclear power in the world. Most of the electricity produced in France is generated by nuclear power stations. The British government, meanwhile, wants to see a renewal of the country's nuclear-power generating capacity and the assets owned by British Energy are seen as a springboard for any such effort. Related Links
Britain trying to water down EU green energy plans: report
London (AFP) July 24, 2008British negotiators are trying to water down European Union plans to give priority access to green energy sources on national energy grids, The Guardian newspaper reported Thursday. |
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