British Energy buoyed by bid rumours

British Energy (BE) share prices have risen on the back of a change in brokers, as well as bid speculation.

British Energy (BE) share prices have risen on the back of a change in brokers, as well as bid speculation.

Despite the FTSE 100 falling closer to a bear market this week, the company enjoyed a 17 per cent rise in share prices on Tuesday, from 555p to 650p thanks to positive speculation.

French energy giant EDF has already been rumoured to be attempting a bid for the company, but since EDF threw its hat in the ring more names have surfaced, pushing the share price even higher.

"Given the tension between investors [and BE] who see high value for the company in the current power market conditions, and utilities (who will have more conservative assumptions) we believe a joint venture option [instead of a full takeover] is the more likely outcome," GE's new broker told the Independent.

The announcement comes as some analysts predict the rise in gas prices to reach 60 per cent by the end of the year, meaning an average family household will face bills of over £1,000 a year.

On the day the speculation pushed BE share prices up 17 per cent, the FTSE dropped a total of 128.5 points, or 2.4 per cent, to 5,171.9.