French Power EDF Ready to Take Over British Energy

After the nuclear power company British Energyspeculation and prospect of an imminent deal excited
announced that it was thinking about takeoverthe investors considerably. British Energy's eight nuclear
approaches earlier this year, and then subsequentlypower stations are Dungeness B in Kent, Hartlepool,
held talks and meetings with EDF of France, E.ON andHeysham 1 and 2 in Lancashire, Hinkley Point B in
RWE of Germany, and Iberdrola of Spain. It is theSomerset, Hunterston B in Ayrshire, Sizewell B in
French energy power house that has emerged as theSuffolk and Torness in East Lothian. The group, which
only formal bidder for the takeover and is now onlyhas around 6,000 staff, also owns a coal-fired power
days away from clinching the £12 billion deal.station at Eggborough, East Yorkshire.
EDF has been one of the leading contenders to buyEDF executives now hope to be able to announce a
British Energy since the British Government effectivelydeal imminently. Centrica, the British power company, is
put the power company up for sale by announcing italso involved in some negotiations with EDF, they are
wanted to sell its 35% stake in the nuclear operator.seeking to secure a deal that would see it acquire
According to the BBC, EDF is now prepared to pay as25% of British Energy.
much as 775p per share, after British Energy releasedThe decisive takeover price for British Energy is still
that none of the potential deals took into account theunder last-minute discussions, but could go above the
soaring wholesale electricity costs and the prospective750p share mark, valuing it at between £11bn
role of its sites and the allotted plans that were inand £12bn. That would secure the Government
development in conjunction to Britain's nuclear poweras much as £4bn. However, the net cash has
supply.already been marked for the decommission costs that
Shares in British Energy, which is capable of producingare connected with dismantling nuclear power stations,
around one-sixth of the UK's energy needs, rose tonearing the end of their lives.
almost 6% following the report as the renewed