British Energy poised to recommend EDF's £10bn bid offer

Published on Sunday 8 June 2008 21:37

NUCLEAR generator British Energy's board is to recommend a £10 billion takeover offer by the utility giant Electricite de France within a fortnight, City sources say.

Banking sources said at the weekend that rival bidders for Scottish-based British Energy, which include ScottishPower-owning Iberdrola of Spain, and German group RWE, are now unlikely to table a firm offer.

Iberdrola declined to comment yesterday, and RWE was not immediately available.

One utilities analyst said: "It looks increasingly likely that an offer will come from EDF, and quite shortly.

"As each week has passed, it has looked less likely Iberdrola and RWE would be able to carve out some consortium bid, either with each other or as a partner of EDF to bid for British Energy.

"EDF was seen by most people, with its nuclear expertise, as being in pole position all along and as BE has scrutinised the detail of its approaches that seems to have been fulfilled."

It will be a particular disappointment for Iberdrola, which took over ScottishPower in spring last year, that it cannot get a slice of the British nuclear generation industry.

It is Spain's biggest nuclear generator, with five plants, although none have been built there since the 1980s because of the government opposition.

EDF made an indicative bid of 680p per share for BE last month, and it is thought its formal offer will not be radically different. The government, which owns a 35 per cent stake in the British company, is known to favour a quick sale to help shore up difficult public finances.