[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 23 November 2005, 10:15 GMT
Drax power station bid talks end
Drax power station
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.

US bidder for Drax power station
09 Nov 05 |  Business
New bid for power station snubbed
19 Oct 05 |  Business
Fresh bid for Drax power station
13 Oct 05 |  Business
Power station ponders 1.9bn bid
14 Sep 05 |  North Yorkshire
Power station Drax set to float
22 Mar 05 |  Business

The BBC is not responsible for the content of external internet sites


Americas Africa Europe Middle East South Asia Asia Pacific