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Government reaffirms alignment with EDF
26 August, 2008The UK's energy minister, Malcolm Wicks, has explained that EDF Energy is still the government's preferred bidder for British Energy (BE).
The UK's energy minister, Malcolm Wicks, has explained that EDF Energy is still the government's preferred bidder for British Energy (BE).
Speaking to the Financial Times, the minister explained that an EDF tie-up is "the most sensible option", a comment which will severely damage Centrica's confidence in its own bid for the company.
The deal between the French company and the British nuclear company was planned to have been finished several weeks ago, after EDF bid 765p per share in cash, but there were last minute faults in the talks which meant the purchase has since been delayed.
Centrica, the owner of British Gas, has made public its own interest in the company, but the government - which owns 35 per cent of BE - has made it clear that Centrica is not a preferred bidder.
It has been said that ministers favour the French company because of its nuclear expertise, and because of the UK's current resurgent interest in nuclear energy such knowledge is invaluable.
However, despite both the government and BE's interest in EDF, Mr Wicks has nevertheless emphasised that the deal is not ultimately up to the government, and is still "very much in [BE's] own hands".
The long, drawn-out sale of British Energy (BE) to EDF Energy has come to an end after the French energy firm bought BE for £12.5 billion, it has been reported.
Government hopes to have an EDF Energy-British Energy (BE) tie up within two weeks have been dubbed "optimistic" by the British nuclear company, according to a recent report.
Gordon Brown is facing the prospect of a major defeat over the government's reluctance to impose a windfall tax on energy companies, it has been reported.
The City of London has launched a campaign against Gordon Brown in order to convince him that introducing a windfall tax on energy companies should be avoided.
TaylorWimpey has reported phenomenally poor first half results for the year so far, recording a loss of £1.5 billion, it has been announced.