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Government 'unwilling to sell British Energy to sole bidder'
The government is believed to be unwilling to sell British Energy to a single bidder despite a relative lack of interest in the supplier.
By the time that Friday's deadline for bids had passed, only France's EDF had expressed its continued interest, with a number of other companies having dropped out of the process amid fears that the acquisition could escalate into a bidding war.
However, a source close to the government has revealed that it is only willing to approve an acquisition if more than one outside party is involved.
According to some observers, this could mean that EDF is permitted to purchase just six of British Energy's eight sites, with the other two sold to a rival company.
In addition, it is believed that ministers are currently divided on whether to favour Centrica as the prospective partner for EDF.
"Some say the Government is on Centrica's side but there are different voices within Whitehall," the source told the Daily Telegraph.
"There are some officials who are concerned about EDF buying the whole of BE.
"But then there are others who are aware of the construction deadlines that have been set for new nuclear stations - and there have already been delays and court challenges, so these officials just want BE sold to anyone quickly."
The government still holds a 36 per cent share in British Energy, which is likely play the leading role in the introduction of a generation of nuclear power across the UK.
By the time that Friday's deadline for bids had passed, only France's EDF had expressed its continued interest, with a number of other companies having dropped out of the process amid fears that the acquisition could escalate into a bidding war.
However, a source close to the government has revealed that it is only willing to approve an acquisition if more than one outside party is involved.
According to some observers, this could mean that EDF is permitted to purchase just six of British Energy's eight sites, with the other two sold to a rival company.
In addition, it is believed that ministers are currently divided on whether to favour Centrica as the prospective partner for EDF.
"Some say the Government is on Centrica's side but there are different voices within Whitehall," the source told the Daily Telegraph.
"There are some officials who are concerned about EDF buying the whole of BE.
"But then there are others who are aware of the construction deadlines that have been set for new nuclear stations - and there have already been delays and court challenges, so these officials just want BE sold to anyone quickly."
The government still holds a 36 per cent share in British Energy, which is likely play the leading role in the introduction of a generation of nuclear power across the UK.
12 May 2008.
© 2008 Adfero Ltd. All rights reserved. Unless expressly stated any views are not those of Shepherd and Wedderburn. News supplied by Adfero DirectNews.
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