Scottish and Southern Energy PLC (SSE.LN) is in talks with Germany's RWE AG (RWE.XE) about mounting a joint bid for British Energy PLC (BGY.LN), U.K. newspaper The Daily Telegraph reported Friday, citing sources close to the situation.

Scottish and Southern Energy PLC (SSE.LN) is in talks with Germany's RWE AG (RWE.XE) about mounting a joint bid for British Energy PLC (BGY.LN), U.K. newspaper The Daily Telegraph reported Friday, citing sources close to the situation.

Iberdrola is also in talks with RWE about British Energy, but people involved are skeptical about how motivated the Spanish utility is to do a deal, the paper reported.

Centrica PLC (CNA.LN) has reached an agreement with Electricite de France SA (1024251.FR) to buy nuclear power on a long-term contract, should the French firm's bid for British Energy be successful, the paper reported.