French Power EDF Ready to Take Over British Energy

After the nuclear power company British Energyimminently. Centrica, the British power company, is
announced that it was thinking about takeoveralso involved in some negotiations with EDF, they are
approaches earlier this year, and then subsequentlyseeking to secure a deal that would see it acquire
held talks and meetings with EDF of France, E.ON and25% of British Energy. The decisive takeover price
RWE of Germany, and Iberdrola of Spain. It is thefor British Energy is still under last-minute discussions,
French energy power house that has emerged asbut could go above the 750p share mark, valuing it at
the only formal bidder for the takeover and is nowbetween £11bn and £12bn. That would
only days away from clinching the £12 billion deal.secure the Government as much as £4bn.
EDF has been one of the leading contenders to buyHowever, the net cash has already been marked for
British Energy since the British Governmentthe decommission costs that are connected with
effectively put the power company up for sale bydismantling nuclear power stations, nearing the end of
announcing it wanted to sell its 35% stake in thetheir lives. Despite Centrica refusing to comment on
nuclear operator. According to the BBC, EDF is nowits involvement in the deal, it is understood that its
prepared to pay as much as 775p per share, afterexecutives whom are also working very busily with
British Energy released that none of the potentialEDF. The British company's involvement in the deal
deals took into account the soaring wholesalewould appease critics of the sale of the UK's only
electricity costs and the prospective role of its sitesmajor nuclear operator to a French company. Since
and the allotted plans that were in development inGordon Brown committed the UK to developing a
conjunction to Britain's nuclear power supply. Sharesbrand new generation of nuclear power plants,
in British Energy, which is capable of producing aroundMalcolm Wicks, the Energy minister, has commented
one-sixth of the UK's energy needs, rose to almostthat while the Government is not opposed to British
6% following the report as the renewed speculationEnergy being taken over by a foreign buyer, they
and prospect of an imminent deal excited theare alert to the sensitivities of such an issue. The
investors considerably. British Energy's eight nuclearGovernment will also have to consider how a deal
power stations are Dungeness B in Kent, Hartlepool,with the French power house EDF would affect
Heysham 1 and 2 in Lancashire, Hinkley Point B inother potential operators in view of a monopolising of
Somerset, Hunterston B in Ayrshire, Sizewell B innuclear power by the French company, given that
Suffolk and Torness in East Lothian. The group, whichBritish Energy's existing sites are likely to be the
has around 6,000 staff, also owns a coal-fired powerfavoured locations for future constructions.
station at Eggborough, East Yorkshire. EDFRyan Whatley is the solar power expert at
executives now hope to be able to announce a dealEcoSwitch The environmental social network.