EDF report fuels British energy speculation

British Energy shares jumped ahead today after it was reported the board of French energy giant EDF had given the green light for a takeover bid.

French newspaper La Tribune said EDF’s directors supported plans to make an offer for 100% of the company, which is part-owned by the Government.

Shares in British Energy, which is capable of meeting one-sixth of the UK’s energy needs, were up 5% as a result, valuing the group at around £7bn (€8.9bn).

EDF’s reported move follows the Government’s confirmation last month that it was considering selling its 36% stake in British Energy. The firm itself also said it had been in discussions with various parties about a takeover or merger.

State-owned EDF was named as a potential bidder, along with British Gas owner Centrica and Spanish industrial giant Iberdrola.

British Energy has eight nuclear stations and is expected to play a major role in the proposed development of the country’s nuclear power supply.