Shares in BE Rise After Takeover Reports

BRITISH Energy shares rose today after reports the board of French energy giant EDF have given the green light for a takeover.

French newspaper La Tribune said EDF’s directors supported plans to make an offer for 100 per cent of the company, which is part- owned by the Government.

Shares in British Energy, which is capable of meeting one-sixth of the UK’s energy needs, were up 5 per cent as a result, valuing the group at around Pounds 7 billion.

The move follows Government’s confirmation last month that it was considering selling its 36 per cent stake in British Energy. The firm itself also said it had been in discussions with various parties about a takeover or merger.

State-owned EDF was named as a potential bidder, along with British Gas owner Centrica and Spanish industrial giant Iberdrola.

British Energy has eight nuclear stations, as well as a coal- fired power station at Eggborough, East Yorkshire, and is expected to play a major role in the proposed development of the country’s nuclear power supply.

EDF operates 19 nuclear sites in France, where it supplies more than 80 per cent of the country’s power needs.

The group also has extensive operations across Europe, with UK arm EDF Energy boasting 5.1 million gas and electricity customers.

Any takeover for British Energy could see EDF forced to sell some of its British assets to avoid the UK’s nuclear capacity being in the hands of a single overseas business.

The Government sold a 25 per cent stake in British Energy last year, raising Pounds 2.08 billion.

Chancellor Alistair Darling said the money would go towards the Nuclear Liabilities Fund, which will help meet the cost of decommissioning the group’s nuclear power stations.

The Government acquired its holding in British Energy after rescuing the nuclear power firm from collapse in 2004

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