France's EDF 'seals British Energy' deal
British Energy has agreed to a takeover by France's EDF for 775p a share, valuing the nuclear company at £12.4 billion, according to insiders.
That is far higher than was expected and well above the French company's initial approach, thought to have been between 685p and 700p a share. Talks have dragged on due to stubbornness on price from both sides.
EDF is now looking to agree a deal with Centrica to take a minority stake in the company, although the terms have yet to be decided.
The French hope to conclude the talks with Centrica by Wednesday. It is understood that Centrica could get a stake of up to 25%.
The companies were not immediately available for comment.
The deal will give EDF control of BE's eight reactors as well as a key role in building the planned new generation of nuclear power stations.
British Energy, 35.8% owned by the Government, has attracted takeover interest since the Government gave the green light to new nuclear power stations in January.
