UK ENERGY firm Centrica is understood to be in talks with French counterpart EDF about creating a new company to mount an £11 billion bid for British Energy.
Centrica is believed to want a 25 per cent stake in the joint venture to buy the East Kilbride headquartered company – giving it guaranteed supply to feed its British Gas retail operation.
It is also reported to have made contact with a number of
other European power firms considering a bid for British Energy.
Weekend reports said talks involving Centrica chief executive Sam Laidlaw and EDF had been taking place for several weeks, but added EDF has reserved the right to go it alone with a solo bid.
The Centrica and EDF proposed tie-up may attract competition concerns, but at the same time any British involvement in the future ownership of British Energy, which owns two power stations north of the Border, is likely to be welcomed within government.
British Energy operates all eight of the UK's nuclear power stations, including Hunterston B in Ayrshire and Torness in East Lothian, and should play a major role in the proposed development of the next generation of nuclear power supply.
It said in March it had received takeover approaches, reportedly prompting due diligence interest from five parties, including German energy firm RWE, France's Suez and Iberdrola, the Spanish owner of ScottishPower.
The UK government is considering its 36 per cent stake in the firm, having sold a 25 per cent stake last year for £2.08 billion. It is thought that bankers at NM Rothschild, British Energy's adviser, have asked for formal bids to be tabled by Friday.
The full article contains 285 words and appears in The Scotsman newspaper.
