CENTRICA might attempt to sweeten its bid for British Energy by adding a cash component to secure backing for a £22.5 billion deal.
The owner of British Gas is in talks with French nuclear operator EDF about a joint bid for British Energy, but said last week that if the current talks failed it might propose a full merger with the East Kilbride-headquartered company.
But the U
K government quickly poured cold water on the deal, saying it favoured a company with experience in the development of new nuclear technology, something both Centrica and British Energy lack.
The comments are said to have prompted a rethink to the original share-based deal.
Sources said a cash element was being considered by the board, in move designed to win UK government support.
Reports said the company may be prepared to come up with up to £4bn to cover all or part of the government's stake in British Energy.
The source said Centrica, with a strong balance sheet and no debt, had "room to manoeuvre" if it decided to include cash in any deal.
Interest in British Energy was sparked earlier this year when the government gave strong indications of support to the development of new nuclear plants.
Sites owned by British Energy, which owns eight existing nuclear stations, are expected to be central to the next generation of stations.
