Scramble for British Energy in high gear

RWE the German energy company and EDF of France held discussions separately with British group Centrica concerning possible takeover bids for British Energy.

This was an indication that even though the talks were at a premature phase, the struggle for control of Britain’s largest power producer was already in high gear. The government is presently considering disposing off a 35.2-per cent share in the energy giant.

British Energy, which owns and runs one coal-fired power plant and eight nuclear power plants, supplies close to nineteen per cent of the electricity consumed in Britain.

Teaming up with British group Centrica would help RWE or EDF take over British Energy since it would dispel fears about nuclear power generation ending up in the hands of foreigners. E.ON of Germany and Iberdrola of Spain have also shown an interest in British Energy.

British Energy plc is the biggest producer of electricity in the United Kingdom. The present market capitalisation in the stock market of British Energy is slightly over seven and a half billion pounds.

The privatisation process for the energy giant begun in 2006 when the government disclosed that it wanted to dispose of its stake in the energy firm. Mid last year the Secretary of State for Trade and Industry revealed that he would authorize the Nuclear Liabilities Fund to offload up to four hundred and fifty million shares, which comprised about twenty eight per cent of what the fund owned in British Energy. Proceeds from the privatisation will be utilised in the diversification of the assets of the Nuclear Liabilities Fund.

www.rwe.com/web/cms/en/8/rwe/