Page last updated at 16:04 GMT, Monday, 9 June 2008 17:04 UK

British Energy still seeks suitor

Dungeness B Power Station

British Energy has said takeover propositions put forward to it were below Friday's closing share price and did not represent shareholder value.

The nuclear power generator, 35% owned by the British government, said it will continue talks with suitors but that would not necessarily lead to an offer.

Its shares fell 2.5% on the news, and closed down 1.9% at 721 pence.

The firm only received one firm bid, of 680 pence a share, from France's EDF, before a deadline expired last month.

Germany's RWE and Spain's Iberdrola have also been in touch with BE, but have not put up a formal offer.

British Energy operates eight nuclear power stations in the UK and also runs the Eggborough coal-fired power station in Yorkshire.

"The board is clear that in current circumstances such proposals do not represent value for shareholders as they fail to take proper account of the current forward price of electricity and the value of the company's sites and people in the context of new nuclear build," British Energy said in a statement.

"We will continue to progress the opportunities available either through an offer for the company or other partnering arrangements," it added.


SEE ALSO
Suez ceases British Energy talks
23 May 08 |  Business
British Energy mulls bid offers
16 May 08 |  Business
Centrica mulls British Energy bid
12 May 08 |  Business
French swoop for British Energy
09 May 08 |  Business
EDF 'may bid for British Energy'
11 Apr 08 |  Business

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