British Energy receives takeover bids valuing it at more than $21 billion

16 May 2008

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.