British Energy PLC said
it received proposals from several parties wishing to make a full
offer for the company, some of which were higher than the closing
price of its shares Thursday.
The company's board said it
reviewed the proposals and decided they require further development
and discussions should continue, most likely for a number of weeks.
The nuclear-power generator said some of the offers were
above Thursday's close 680 pence a share, valuing the company at
about 10.85 billion GBP ($21.13 billion).
"There can be
no certainty that any of the proposals will lead to an offer being
made for the company nor as to the terms on which any offer would be
made. A further announcement will be made in due course," the
company said.
A bidding contest for British Energy is looking
more likely, said Evolution Securities analyst Lakis Athanasiou.
British Energy shares on Thursday had fallen 115 pence, or
13%, since April 25, when hopes of a bidding war for the company
began to fade. Friday, the stock rose 5.2%, or 35.50 pence, to 715.50
pence in a higher overall United Kingdom market.
The U.K.
government wants to sell its 35.2% stake in British Energy, but the
buyer of that holding would automatically have to make a bid for the
whole company.
Electricite de France SA submitted a bid for
British Energy on May 9, which was the tentative deadline given by
the U.K. company's advisers, Rothschilds, according to a person
familiar with the matter.
A number of European utilities,
including the U.K.'s Centrica PLC, Germany's RWE AG and Spain's
Iberdrola SA, are also interested in British Energy.