BE merger in Centrica plans

Published on Monday 4 August 2008 10:56

BRITISH Gas owner Centrica will discuss revisiting plans for an all-share merger with British Energy when it meets shareholders this week.

Centrica chief executive Sam Laidlaw is expected to discuss the plan with key investors including Invesco and M&G Investment Management, which hold stakes in both companies.

Sources say it is "inevitable" the subject will come up, but it is unlikely anything concrete will happen for the rest of summer.

It follows British Energy's decision to reject a 12 billion bid from the French energy giant EDF last Thursday, after opposition from Invesco and M&G.

The Government, which holds a 36 per cent stake in BE, is expected to put pressure on EDF to table an improved offer.