British Energy still talking to Suez and others

British Energy confirmed on Friday that it has received several bids for the 35% that the State has in its capital, some of them at a price higher than the stock market closing on Thursday, of 680 pence per share.

This means valuing the entire company (whoever wins the bid must launch a takeover offer for 100%) at 14,000 million Euros, 11,144 million pounds.

Although, in their statement, the British company did not reveal the identity of companies that have submitted tenders, and which currently are not binding, market sources believe that it is the energetic French company GDF and Suez.

British Energy has considered the offers and decided that negotiations should continue with all parties concerned.

In addition, British Energy, which owns the British nuclear fleet, comprising 12 reactors, stressed that these negotiations could still continue for several weeks.

In the midst of darkness surrounding the auction process of British Energy, business sources indicate that the deadline for submission of non-binding tenders ended on May 9, but has since been extended.

Although Iberdrola has not submitted any proposal or offer, according to a spokesman, they have informed British Energy (in what it called ‘approaches’) that they are looking for a partner with whom to make a bid through a consortium.

In this regard, Iberdrola is negotiating with Germany’s RWE and with other companies.

Suez is also pre-occupied with its merger with GDF and this is their current main priority. But they are said to still be drafting proposals for presentation to British energy.