Spanish utility Iberdrola SA (IBE.MC) was understood to be putting the final touches on a bid for British Energy Group PLC (BGY.LN), The Times of London reports Thursday citing a source.
Iberdrola was "sounding out" potential partners in a bid for British Energy while also working on its own solo bid, the source said.
Electricite de France SA (1024251.FR) and Iberdrola are each expected to submit initial bids of between 600 pence - 700 pence a share, valuing British Energy at more than GBP9.6 billion, The Times reported. EdF and Iberdrola declined to comment.
Bids for British Energy, the owner of eight nuclear reactors that generate about a fifth of the U.K.'s electricity, are due by Friday. British Energy has drawn interest from utilities that are keen to use the company's existing sites to build a new generation of nuclear power stations.
Separately, the Financial Times reports without citing sources that British Energy and the U.K. government, which owns a 35% stake in the company, would be willing to entertain bids even after the Friday deadline.
John Hutton, the U.K. government's business secretary, has rejected calls to set out his policy on the sale by emphasizing that British Energy is a publicly-listed company, the FT reports.