British Energy Group PLC (BGY.LN) shares traded up about 6% early Friday following a press report that Electricite de France SA's (1024251.FR) board has given the green light for the French electricity giant to launch a takeover bid for the U.K. utility.
A spokeswoman for British Energy declined to comment on the report in La Tribune that EdF was preparing a bid worth EUR8.8 billion.
"It's more speculation that we're not in a position to comment on," the British Energy spokeswoman said.
EDF, which has publicly said it is interested in building new nuclear in the U.K., couldn't be reached for comment.
At 0913 GMT, British Energy traded up 4.6%, or 30 pence higher, at 693 pence, while EdF shares traded 0.2% lower, or down EUR0.15, at EUR60.16.
Last month, British Energy said it was in discussions with potential partners or buyers for the government's 35.2% stake in the company.
German utilities E.ON AG (EOA.XE) and RWE AG (RWE.XE), Scottish Power, which is owned by Spain's Iberdrola SA(IBDRY), and U.K. utility Centrica PLC (CPYYY) are also the most likely candidates for a takeover as they have already expressed interest in taking part in new nuclear build in the U.K.
In January, the U.K. government invited interested parties to submit proposals for the construction of new nuclear power plants in the country.
The U.K., one of the first countries to invest in nuclear power, is looking to replace a number of power plants that are due to shut down in the next 20 years.