EDF sweetened its bid to GBP7.74 per British Energy share, GBP0.09 higher than the previous bid, while also offering an alternative bid of GBP7 per share along with contingent value rights.
Industry sources are of the opinion that a successful deal has been negotiated by the shareholders of British Energy and EDF. This deal is expected to come as a positive development to the UK government, which has been seeking a strong parent for the country’s sole nuclear power generator.
The British government, which owns a 35% stake in British Energy, would be in for a cash landfall once the deal goes through. This could galvanize the launch of a major nuclear new build program, according to industry watchers.
As part of the final deal, EDF is expected to hand over certain British Energy sites which are slated to be auctioned off to other interested parties like E.ON and RWE, which have indicated interest in building new nuclear power plants in the UK.
