EDF to take over British Energy?

EDF is expected to convene a Board of Directors meeting on either Wednesday or Thursday with regard to a possible bid for the British power provider British Energy.

This could be done through the creation of a joint venture company that would be 25% owned by Centrica, another British provider of gas, and the other 75% of the company would be controlled by French company, EDF.

EDF is considered by many analysts to be the favourite in the race for the acquisition of British Energy, for which the deadline for submission of bids is scheduled for Friday.

The French company would probably offer between 600 and 640 pence per share, which would boost British Energy’s value to between £9.6 and £10.2 billion.

But it might be tempted to offer lower, knowing that it is not impossible that they could find themselves alone in the running.

It looks like German RWE has become less tempted to make a bid, because of the withdrawal its partner, Swedish Vattenfall, whose projects have been blocked by the government of Stockholm, in the area of development of nuclear energy.

35% owned by the British government, British Energy owns and operates most nuclear plants in the country.

The Swede’s were forced to pull out by their government, as the UK government wants four new nuclear reactors built, no matter who eventually owns the company.

The Swedish government forbids its companies to be involved with Centrica production.