Centrica talking to EDF on British Energy-report
April 6th, 2008 | by admin |LONDON, April 6 (Reuters) - Britain’s Centrica (CNA.L: Quote, Profile, Research) haslaunched talks with French utility EDF (EDF.PA: Quote, Profile, Research) about a possiblejoint bid worth 10 billion pounds ($20 billion) for nuclearpower generator British Energy (BGY.L: Quote, Profile, Research), the Sunday Telegraphsaid.
On Friday, British Energy shares jumped 7.3 percent afterFrench business daily La Tribune reported that EDF’s board hadgiven the go-ahead for a takeover bid.
The Telegraph said Centrica, which owns British Gas, wantedto secure a “British-led” solution to the future of BritishEnergy, which has been in talks with several companies about apossible sale or partnership. Centrica declined to comment.
Citing people close to the talks, the newspaper saiddiscussions with EDF were about a deal that would involve buyingthe government’s 35 percent stake in British Energy as well asthe firm’s listed shares.
British Energy has a market capitalisation of $14.6 billion.
Centrica was also in discussions with infrastructure fundswhich might be interested in forming a consortium to make anoffer for the UK nuclear generator, the Telegraph said.
The Sunday Times said foreign utility groups have approachedCentrica on a possible joint bid for British Energy.
Centrica’s involvement would deflect any criticism aboutstrategic industries going to foreign owners, the Times said.
Sources familiar with the matter have told Reuters that EDFwas expected to submit a non-binding offer for British Energy,but the process was still at an early stage.
