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France's EDF 'seals British Energy' deal
25.07.08
British Energy has agreed to a takeover by France's EDF for 775p a share, valuing the nuclear company at £12.4 billion, according to insiders.
That is far higher than was expected and well above the French company's initial approach, thought to have been between 685p and 700p a share. Talks have dragged on due to stubbornness on price from both sides.
EDF is now looking to agree a deal with Centrica to take a minority stake in the company, although the terms have yet to be decided.
The French hope to conclude the talks with Centrica by Wednesday. It is understood that Centrica could get a stake of up to 25%.
The companies were not immediately available for comment.
The deal will give EDF control of BE's eight reactors as well as a key role in building the planned new generation of nuclear power stations.
British Energy, 35.8% owned by the Government, has attracted takeover interest since the Government gave the green light to new nuclear power stations in January.
Reader views (1)
Frenchy might pretend to be a socialist at heart but he sure knows a thing or two about how to build a monopoly.
The labour government is of course soundly asleep after having had one too many meat pies in Manchester ! The stupid regulators it has appointed are seeing customer prices ever rising, with the sole aim to increase the monopolistic income stream and hence value of the original investment made by the buyers of the utility company. It is only odd that another dubious Australian company has not joined in the fray and made a bid as well in this 'turkey shoot' of the British consumer under an inept labour government.
Frankly these socialists simply do not have the savvy to understand how the Northern Rocks of this world will use the system to enrich themselves.They should stick to their oily trade union conferences and be kept as far away as possible from government.
- Ike, London
