5 August 2008
Gas and electricity supplier Centrica has confirmed that it is holding talks with a third party regarding a possible takeover of British Energy. The British Gas owner said it was looking to take a "minority ownership position" in the nuclear generator, subject to various conditions. One of these conditions would be the successful acquisition of the company by the third party - which is strongly believed to be French state-owned gas and electricity supplier EDF Energy. EDF's bid for British Energy was turned down last week. Centrica has now said it will consider merging with the nuclear power firm if a takeover does not go ahead. "In the event that the third party does not proceed with an offer for British Energy, or Centrica's discussions with the third party do not result in an agreement, Centrica might consider a number of other alternatives with respect to British Energy," the company stated. Both British Gas and EDF Energy have announced increases in their gas and electricity prices recently. The move is expected to prompt further price escalation from other suppliers.
© 2008 Adfero Ltd
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