EDF may bid for British Energy

Electricite de France may join the £11 billion bid battle for nuclear power firm British Energy but will not overpay, a source close to the matter said.

Utilities across Europe are stalking British Energy, which is the UK's only private nuclear power generator and is 35 per cent owned by the government, to take advantage of the country's new drive towards nuclear power.

The source said state-controlled EDF, the world's biggest single producer of nuclear power, was considering a bid pitched below 700 pence a share. A report in the Times newspaper earlier said it was planning to offer above that level.

EDF and British Energy declined to comment.

Sources close to the matter told Reuters that Germany's RWE had already made a bid proposal of just under 700 pence a share in cash and that Centrica had proposed an all-share deal.

"EDF will maintain price discipline," the source said, adding EDF hoped to use its record and expertise as Europe's biggest nuclear operator to win over the government.

However, British Energy shares were up 0.7 per cent at 745 pence by 8:20 a.m., signalling investors hope a takeover battle will drive the price of current bid proposals much higher.

EDF has said it is considering acquisitions in Spain and Belgium and consolidating its positions in Britain, Italy and Germany. It has been linked for months to a possible bid for Spain's Iberdrola.

The Times said final bids for British Energy were due within weeks and quoted one source as saying a sale could be wrapped up by July.

Electricite de France SA (EDF) is a France-based integrated energy operator active in the generation, distribution and transmission of electrical energy. Although based in France, the Company is active globally; it provides energies and services to 37.8 million customers throughout the world.

The group network carries out energy-related activities focused on the core businesses of generation, trading, transmission, distribution, supply and services. EDF is headquartered in Paris, France, and is listed on the Euronext Paris Stock Exchange.