British Energy Issues Update On Possible Takeover Talks
Written by NucNet
Tuesday, 10 June 2008
10 Jun (NucNet): British Energy (BE) said yesterday that although it
had received a range of takeover offers, none of the proposals so far
represented value for shareholders.
"The (BE) board is clear that in current circumstances such proposals do not represent value for shareholders as they fail to take proper account of the current forward price of electricity and the value of the company's sites and people in the context of nuclear new build," the company said.
BE said it expects further talks with interested parties and will continue to consider opportunities either through an offer for the company or "other partnering arrangements" that maximise the value of the company's participation in nuclear new build.
However, BE said "there can be no certainty that any of the discussions will lead to an offer being made for the company nor as to the terms on which any offer would be made".
In May 2008, BE confirmed it had received proposals from companies considering takeover bids. Proposals included offers priced higher than the company's closing share price on 15 May 2008 of 6.8 pounds (GBP) (13.2 US dollars, 8.5 euro) a share. That would value the company at that time at more than GBP 10.9 billion.
In a separate announcement yesterday, BE said it would hold a series of meetings to talk about potential new nuclear build at Sizewell in Suffolk, England, next month.
Brian Dowds, station director of the Sizewell B nuclear plant which is owned and operated by BE, said: "British Energy is very keen to continue the conversation with our neighbours around Sizewell B in advance of decisions on siting being made or any planning applications being submitted."
Related reports in the NucNet database (available to subscribers)
British Energy Agrees Grid Access For Possible New-Build Sites (News No. 250, 28 November 2007)
British Energy Confirms It Has Received Takeover Proposals (World Nuclear Review No. 18, 16 May 2008)
