In a culmination of the continued interest shown in British Energy, the country's biggest nuclear power producer said that it has received approaches from companies considering takeover bids, some of which value it at more than £10.9 billion ($21.3 billion).

We had earlier reported on the possibility of such bids one month back. With Friday being the deadline for submission of such bids, the company has reportedly received three of them. (See: German energy major RWE makes £11-billion power play for British Energy)

RWE AG, Germany's second-biggest utility, ruled out a full takeover of British Energy after Vattenfall AB, its partner of choice for a joint bid, pulled out. Since then, RWE has declined to comment on its reported interest in the company.

Two of the three proposals received by British Energy were for more than 680 pence a share, yesterday's closing price, sources said. Centrica Plc, the UK's biggest energy supplier, is reported to be one of the bidders. The other contenders are rumoured to be Electricite de France (EDF) of France and Iberdrola SA of Spain.

On 17th March, British Energy said it was in discussions with other companies that could lead to a business combination or a bid offer. It said it was in talks that could lead to a merger or takeover, after meeting with more than 10 companies about potential partnerships to develop nuclear plants on its existing sites.

British Energy owns eight nuclear reactors and generates about one-sixth of the Britain's power. On Friday it said that it was looking at the proposals and the process could take a number of weeks.

French finance minister Christine Lagarde said yesterday the government backs a bid by EDF for British Energy. France's state-controlled utility, the world's biggest nuclear power company, made a proposal for its British rival on 9th May.

The reason behind the enthusiastic interest to British Energy is not hard to find. Even though it has seen profits declining and been forced to shut down four reactors by end-2007 due to safety concerns, its existing assets would provide a fillip to any company looking for a formidable presence in the UK's changing energy scenario.

Eager to reduce its exposure to energy imports, cut carbon dioxide emissions and diversify its sources of power away from fossil fuels, the country has committed to building a new generation of nuclear power plants. British Energy, even with decades-old power stations, could prove to be a crucial factor in this drive towards clean, nuclear power. Newer plants can be built on the existing sites, which are the preferred locations for such large-scale constructions.

In afternoon deals, the share price of British Energy soared 6.69 per cent to 725.5 pence. EDF gained 0.15 per cent to €67.64, RWE climbed 0.63 per cent to €77.75 while Iberdrola fell 0.51 per cent to €9.72.