The future of British Energy could be decided over the coming days as one of its largest shareholders is set to hold talks with Centrica, the company keen to acquire the nuclear energy supplier in a multi-billion pound deal.

M&G Investments, which holds a seven percent stake in British Energy is to meet with Centrica in order to discuss the possibility of an all-share merger between the two firms, with the valuation of the UK energy giant expected to be the focus of the talks.

While Centrica has so far indicated that it sees the 765-pence-a-share placed on British Energy as too high, M&G believe that this could even be too low, given the potential of the nuclear sector within the UK.

Indeed, according to the Daily Telegraph, this issue was one of the principal reasons behind the fund managers opting to turn down a takeover approach for British Energy from France's EDF at the last minute earlier this year.

However, just last week, business secretary John Hutton signalled that the government, which owns a 35% stake in British Energy, would still prefer to reach an agreement with the French firm.