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EDF makes offer for British Energy
Posted: 10 May 2008 0337 hrs

 
 
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LONDON : State-owned French power company EDF has submitted an offer for nuclear power operator British Energy, the BBC reported Friday on its website.

The BBC said EDF had put forward its bid -- so far the only for the government's stake in British Energy which is up for sale -- but gave no details as to a price.

British Energy and EDF declined comment.

Earlier, reports said that EDF had bought land near two existing nuclear sites in England and Wales.

The Financial Times said the firm had acquired land near Wylfa on the island of Anglesey, north Wales, and Hinckley Point, in the county of Somerset, southwest England.

It said such "stealthy purchases" could allow EDF to build up to three new atomic power stations, regardless of whether it is successful in its bid for British Energy.

Friday is the deadline for bids for the British government's 35.2 percent stake in British Energy, which provides nearly 19 percent of the country's electricity. It owns and operates eight nuclear power stations.

French business daily La Tribune said Tuesday that the EDF group, which is the biggest producer of nuclear energy in the world, was considering purchasing the stake and creating a joint company with Britain's Centrica.

German power giants RWE and E.ON plus Spain's Iberdola are also said to be among the likely bidders.

The Daily Telegraph said Friday that EDF and its advisers, Merril Lynch, were putting together a deal worth between 9.2 billion pounds (11.7 billion euros, 18 billion dollars) and 10.2 billion pounds.

The government approved a new generation of nuclear power stations in January this year, signalling that they were likely to be built on or near existing sites primarily by private firms.

The FT described EDF's acquisition of the land as "a move of strategic audacity" which "positioned itself to take a leading role in Britain's nuclear future irrespective of what happens to British Energy".

- AFP /ls

 

 



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