THE expected bidding war for British Energy failed to materialise last night after just one solo bid was believed to have been lodged for the nuclear power giant.
French company EDF is understood to have submitted the only offer for the Scottish firm, which owns eight nuclear power stations and one coal-fired plant in the UK.
ScottishPower owner Iberdrola is believed to have ruled out making a bid by yester
day's deadline, industry sources told The Scotsman.
East Kilbride-headquartered British Energy was the subject of intense speculation when the UK government put its 35 per cent stake in the firm up for sale, with all Europe's most powerful utilities showing interest.
But now some of the expected bidders have fallen away and none seems prepared to offer more than earlier indicative offers. Shares fell 2 per cent yesterday on the lack of bids, to 701p.
Industry sources yesterday said that British Energy had viewed yesterday's deadline – set by Rothchilds which is handling the sale on behalf of the government – as more of a "time to review the situation" and bids could still be made over the coming weeks.
Reports yesterday claimed that EDF is to offer "substantially" less than 700p per share if it does make a bid, while sources also claimed that German rival RWE could still put in an offer "at a later date".
"RWE is not necessarily walking away," one of the sources said.
It is understood that the deadline, the second such date for bidders to show their cards, was meant for formal offers with details of financing, but these are not final binding bids and may lead to a third round. A source close to Iberdrola last night suggested it was possible the Spanish firm could still make a bid for British Energy at a later date, but said it would depend on "certain financial criteria".
The source told The Scotsman that the company was still interested in nuclear development plans in the UK, which may or may not involve British Energy.
Investment bank Rothchilds and British Energy both refused to comment on possible bids.
The failure of the bids to materialise came as EDF confirmed it had bought land next to two nuclear power plants, one at Hinkley Point in England and the other at Wylfa in Wales.
This puts the company in a position to invest in the UK's nuclear industry whether or not it is successful in a takeover of British Energy.
A spokeswoman for EDF said: "EDF has been exploring possibilities at Hinkley Point and at Wylfa for more than a year. As a result, EDF has purchased land next to both locations."
The full article contains 454 words and appears in The Scotsman newspaper.
