British Energy optimistic about EDF

British Energy described as "optimistic" government hopes that it may agree a merger with French power group EDF in the next two weeks, saying a deal this month or October is more likely.

Ministers want the nuclear power generator and EDF to agree a deal as soon as possible, the Daily Telegraph quoted Business Secretary John Hutton as saying on Thursday.

"I really want to move on," the newspaper quoted Mr Hutton as saying in an interview. "I don't think we can go on very much longer without knowing how things are going to unfold.

"I would like this all to possibly be resolved within the next couple of weeks."

A spokesman for British Energy said: "I think two weeks is optimistic.

"We're certainly not expecting anything this week and I think it's unlikely that anything will be announced the following week either.

"We're keen to come to an agreement on a deal with EDF, although whether that's achieved is still open to debate."

In July, the British group rejected EDF's £12 billion takeover bid, saying it was too low.

Rival British power group Centrica said last month it might revive plans to merge with British Energy, but the government, which owns a 35 per cent stake in British Energy, said its preferred option remained a takeover by EDF.

The British Energy spokesman confirmed a claim in the Telegraph that the company was in talks with EDF to try to reach agreement over a potential price, although its shareholders were seeking more than EDF had offered. "I don't think we'll come to a conclusion in the next week, or even in two weeks," the spokesman said.

"Hopefully, sometime during this month, we'll have a final announcement.

"We'd like it to be concluded as soon as possible, but it's very hard to put a timeline on it. It could run into next month." The government was clear that the EDF deal was a good one and that it would allow ministers to fast-track development of a planned fleet of new UK nuclear power stations, the Telegraph quoted Mr Hutton as saying. A spokesman for the Department for Business, Enterprise & Regulatory Reform (DBERR) said the government had not set a two-week target for a deal.

"We've said we'd like to see a successful conclusion as soon as possible, but there's no two-week deadline," he said.