Drax power station bid talks end

Drax is set for a stock market listing in December

Britain's biggest coal-fired power station Drax has said takeover talks with a US bidder have ended.

A US consortium led by Constellation Energy had made an approach for the North Yorkshire-based plant.

However, talks between the two failed to reach an agreement, and Drax is now set to go ahead with a stock market flotation in London next month.

The Drax power station generates 7% of the UK's electricity needs and employs 560 people.

It is currently owned by creditors after its former owner, US firm AES Corp, withdrew financial support for the plant.

No breakthrough

In recent months, a number of groups have made bid approaches to Drax, valuing it at about £2bn, but no offers have been accepted.

The Constellation Energy-led consortium BCHP also included hedge fund Perry Capital and private equity investors Hellman & Friedman and the Blackstone Group.

In a statement, the two sides said BCHP had recently held a number of meetings with Drax but that these had failed to make a breakthrough.

"It is clear from those discussions, and soundings taken of Drax's shareholders by the company and advisers to the shareholder committee, that a significant majority preferred to remain committed to the refinancing and listing of Drax," the statement said.

Drax's share listing is now expected to take place on 15 December.