July 17, 2008

British Energy Ropes in Gleacher Shacklock to Evaluate EDF Bid Approach

French energy major EDF's prospective bid of between GBP11 billion to GBP12.6 billion for the takeover of UK-based nuclear power generator British Energy seems closer to reality, following British Energy's engagement of independent valuation advisor Gleacher Shacklock to consult on the deal, according to The Daily Telegraph.

The news source reported that British Energy (BE) has appointed investment banking firm Gleacher Shacklock to operate as a Rule-3 advisor. BE has previously sought advice in its takeover talks by EDF, from NM Rothschild and JP Morgan Cazenove.

Companies that have received takeover interest are mandated to appoint Rule-3 advisors, under the Takeover Panel rules, if their active investment banking advisors have commercial dealings with the bidder. Gleacher Shacklock is expected to mostly provide BE with advice on valuation.

BE had earlier rejected a bid approach by EDF, estimated to be between GBP6.80 and GBP7 per share, as the offer was below its then GBP7.35 share price. BE and EDF are in negotiations to strike a deal, with industry analysts speculating a successful bid to be in the GBP7.50 to GBP7.75 price band, reported The Daily Telegraph.