Sweden’s Vattenfall may join race for British Energy
Apr 14 2008 by Peter McCusker, The Journal
A FOURTH party is reputedly interested in joining the race for British Energy.
Swedish Vattenfall, a state-owned firm, is said to have appointed investment bank Citigroup to look into the benefits of a possible bid, according to reports yesterday.
If Vattenfall does decide to table a bid it will be competing with other European energy companies such as the French firm EDF Energy and Germany’s RWE.
Vattenfall is Europe’s fifth largest electricity generator and it already has operations in Denmark, Finland, Germany and Poland, as well as owning the Kentish Flats offshore wind farm in the UK. The Government sold a 25% stake in British Energy last year, raising £2.08bn, and it is now considering selling its remaining 35% stake in the group.
British Energy operates all of Britain’s nuclear power stations including the one at Hartlepool, and is expected to play a major role in the proposed development of the next generation of nuclear power supply. Meanwhile speculation continued as to whether British Gas owner Centrica would team up with another firm to bid for British Energy.
It is thought Centrica would have been keen to bid on its own, but it has been held back by a lack of financial firepower and falling share price. Instead it is understood to have been approached by European firms, including EDF and RWE, who hope Centrica’s involvement will water down criticisms of strategic industries going to foreign owners.
A Centrica spokesman declined to comment and none of the other companies could be contacted.
