EdF bid too low, says British Energy

10 June 2008

British Energy (BE) said that although it had received a range of bid offers, "none of the proposals put forward so far is above the share price at the close of business on Friday 6 June." BE's shares had closed at 735 pence ($14.37) per share. In a statement, the company stated 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." It added, that "the board will continue to progress the opportunities available through an offer for the company or other partnering arrangements which maximise the value of British Energy's participation in nuclear new build." Electricité de France (EdF) is the only company to have made a recent offer, although its bid, priced between 680p and 700p ($13.30-$13.70) per share, is subject to conditions. Germany's RWE made an indicative cash offer of almost 700p ($13.70) per share earlier in 2008, but has yet to come back with a firm bid. BE said that "it expects further discussion with interested parties."