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Posted to the web on: 19 May 2008
Paul Dobson
Bloomberg

LONDON — British Energy Group, the UK’s biggest nuclear power producer, rose the most in a month in London trading after it received a takeover proposal pricing the company at more than £10,9bn.

Power companies want to buy British Energy because UK Prime Minister Gordon Brown backs building nuclear reactors to meet demand and to replace ageing units. The company, based in East Kilbride, Scotland, said it had received a “range of proposals” for a takeover, which would include the state’s 35,8% stake.

French Finance Minister Christine Lagarde said earlier this month the government backed a bid by Electricite de France for British Energy. France’s state-controlled utility, the world’s biggest nuclear power company, made a proposal for its UK rival, two people with knowledge of the bid have said.

E.ON , Germany’s largest utility, was interested in building nuclear power plants in the UK, CEO Wulf Bernotat said earlier this month. He would not say whether E.ON would bid for British Energy.

RWE , Germany’s second-biggest utility, ruled out a full takeover of British Energy after Vattenfall, its partner of choice for a joint bid, pulled out. Spain’s Iberdrola , which bought Glasgow-based Scottish Power for £14,4bn in April last year, has held talks with Centrica about a bid for British Energy.

Westinghouse Electric, the nuclear-reactor builder owned by Toshiba , said six European utilities supported its latest reactor design for use in the UK.