THE prospect of a bidding war for nuclear power group British Energy put the heat on its share price yesterday.
Shares in the East Kilbride-based group jumped more than 5 per cent on news it had received proposals from "several parties". Any offer is likely to value BE about £11 billion.
The potential bidders are believed to be French utility EDF, France's
Suez and a combined proposal from Germany's RWE and Spain's Iberdrola.
The board said: "The company has received a range of proposals from several parties wishing to make a full offer for the company ... These include proposals priced higher than the company's closing share price (of 680p] on 15 May 2008.
"The board has reviewed proposals and has decided that discussions should continue with all parties concerned."
BE warned that the process was "likely to continue for a number of weeks".
Speculation on who would be bidding has been rife for several weeks.
EDF was believed to be the only bidder to make a proposal by BE's initial deadline in April, which caused the company share price to decline as a sole bidder would drive down value. It is believed the firm received two further proposals last week.
BE shares rose to 724.5p yesterday, but fell back slightly to close at 715.5p, a rise of 5.2 per cent on the day.
Analysts said state-backed EDF has both a strong financial position as well as the technological expertise to build new reactors.
The UK government holds 36 per cent of BE's shares.
The full article contains 267 words and appears in The Scotsman newspaper.
