Money Story

19 July 2008 15:39 BST

British Energy shares rise on bids

Friday, 16 May 2008 09:46

Nuclear power station operator British Energy has received several offers

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Shares in British Energy rose 5.74 per cent on the FTSE 100 this morning on an announcement that it has received a range of takeover proposals, some of them valuing the company higher than its closing share price.

Shares in the power generation firm, the UK's largest producer of electricity, hit 719p in morning trading on the index, which was up overall by 0.61 per cent by 08:49 BST.

The government has been looking for buyers for its 35.2 per cent stake in the company, which owns and operates eight nuclear stations. The deadline for bids is today.

As part of its energy policy, the government has announced its intention to invest in nuclear power and wants to build a new generation of power stations and is looking for backing from private firms.

In a statement to the stock exchange, British Energy said: "The company has received a range of proposals from several parties wishing to make a full offer for the company including the Nuclear Liabilities Fund's convertible cash sweep interest.

"These include proposals priced higher than the company's closing share price on May 15th 2008.

"The board has reviewed the proposals and has decided that discussions should continue with all the parties concerned."

This could take a number of weeks, the company added. At the market's close yesterday, shares in British Energy were worth 680p.

Several bidders have been named in the press, including French power firm EDF, German power giants RWE and E.ON, as well as Spain's Iberdrola.

But British Energy has not confirmed the names of any bidders involved in the process. End of story

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Money Story

British Energy shares rise on bids

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