RWE, Centrica bid for B.Energy: sources
Written on April 11, 2008
Germany’s RWE (RWEG.DE: Quote, Profile, Research) and Britain’s Centrica (CNA.L: Quote, Profile, Research) have both made indicative bids for British Energy (BGY.L: Quote, Profile, Research) valuing the nuclear power operator at up to 11 billion pounds ($22 billion), sources close to the matter said.
One source said on Thursday that RWE, Europe’s third-biggest utility and the owner of British energy supplier nPower, made an all-cash proposal of just under 700 pence a share.
Another source said Centrica, which owns British Gas, had put forward an all-share bid, also pitched below 700 pence a share.
Utilities across Europe are stalking British Energy, which is the UK’s only private nuclear power generator and is 35 percent owned by the British government, to take advantage of the country’s new drive towards nuclear power same day payday loans cash advance today.
Shares in British Energy, the country’s biggest electricity producer, leapt by up to 5.6 percent to 741 pence on speculation of a bidding war and hopes that other potential suitors, such as Electricite de France (EDF) (EDF.PA: Quote, Profile, Research), might enter the fray.
“RWE has set a benchmark, so that puts the pressure on other potentially interested parties,” said Charles Stanley analyst Tina Cook.
RWE’s proposal was submitted before March 17, when British Energy said it was in talks that could lead to a takeover or partnerships, the source said.
RWE, Centrica, British Energy and EDF all declined to comment on Thursday.
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