British Energy preferred over Iberdrola

British Energy Group is being considered as a much more important takeover target by EDF than the Spanish power firm, Iberdrola. For EDF this is purely strategic because by buying British Energy, the UK subsidiary of EDF, EDF Energy will attain self-sufficiency in the generation of electricity. It would also position EDF at the core of the newly announced overhaul of the nuclear energy infrastructure in the United Kingdom.

Some of the ways EDF is contemplating using in buying into British Energy include partnering with another interested buyer; buying a minority stake on its own or acquiring some of the nuclear power facilities that British Energy owns in the United Kingdom.

EDF is said to be ready to fork out up to 9.3 billion Euros in the acquisition of British Energy.

Another argument is that EDF considers a takeover, either on its own or as a joint venture with another giant European utility such as RWE or Centrica, to be less prohibitive than a bid for Iberdrola.

In the United Kingdom, British Energy is the leading producer of nuclear power and supplies the nation with approximately fifteen per cent of the electricity. Suez, the energy and waste group based in France, is also interested in bidding for British Energy.

Meanwhile Iberdrola has released its first-quarter financial results and the net profits hit the 1.2 billion Euro mark. This was a one hundred and sixty two per cent increase attributed to the sale of assets and the acquisitions it made.

Iberdrola disclosed that the core profit increased by sixty five per cent to stand at 1.8 billion Euros. Some five hundred and seven million Euros came from Scottish Power, its British subsidiary.

www.edfenergy.com