EdF, RWE, Iberdrola set to bid for British Energy - source
France’s EdF, Germany’s RWE and Spain’s Iberdrola are expected to be among companies that will submit offers for British Energy (BE) by a deadline on Friday, a source close to the matter said.
Another source said on Sunday these would be formal offers with details of financing, but were not necessarily final bids. A person familiar with the situation told Reuters last month that RWE, Europe’s third-biggest utility and the owner of British energy supplier nPower, had made an indicative all-cash proposal of just under 700 pence a share for British Energy, valuing it at up to £11 billion ($21.8 billion).
Another source close to the matter said that Electricite de France (EdF) would bid substantially below 700 pence a share, hoping its expertise in nuclear power would persuade the British government to prefer its proposal. Utilities across Europe are stalking British Energy, which is the UK’s only private nuclear power generator and is 35% owned by the British government, to take advantage of the country’s new drive towards nuclear power.
Centrica, which owns British Gas, is trying to pair up with one of the bidders, sources close to the matter have said. British Energy, EdF, RWE and Centrica declined to comment. A spokesman for Iberdrola, which owns Scottish Power, said: „We are studying this but still have not taken a decision. We will decide over the coming week.” (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.