British Energy Group Plc, the UK's biggest nuclear power producer, received approaches from companies considering takeover bids, some of which value it at more than 10.9 billion pounds ($21.3 billion). Two of the three proposals received by British Energy were for more than 680 pence a share, yesterday's closing price, said a person with knowledge of the offers, who declined to be identified because the matter is confidential. Centrica Plc, the UK's biggest energy supplier, made one of them, a second person said. Power companies want to buy British Energy because UK Prime Minister Gordon Brown backs building reactors to meet demand and to replace aging units. The East Kilbride, Scotland-based company said today in a statement it received a “range of proposals'' for a takeover, which would include the state's 35.8 percent stake. “We're some way away from getting a decision,'' Pali International Ltd. analyst Angelos Anastasiou said in a telephone interview. “It's moderately positive to have the indication that there's more than one party.'' The statement “implies it includes proposals priced lower'' than yesterday's closing price, as well as above. French Finance Minister Christine Lagarde said yesterday the government backs a bid by Electricite de France SA for British Energy. France's state-controlled utility, the world's biggest nuclear power company, made a proposal for its UK rival, two people with knowledge of the bid said May 9. “It's a terrific strategic move by EDF,'' Lagarde said yesterday in an interview with Bloomberg Television. “It will be in the best interests of all players to actually develop a very strong partnership in the field of energy to combine the strengths of EDF with the potential and the sites and the strategy of BE.'' The UK won't prevent foreign utilities from buying it, Energy Minister Malcolm Wicks said last month. British Energy climbed as much as 7.4 percent to 730 pence in London trading. The stock was at 718.5 pence as of 10:09 A.M. local time. Centrica spokesman Andrew Hanson declined to comment on British Energy, as did Carole Trivi, a Paris-based spokeswoman for Electricite de France. Andrew Dowler, a British Energy spokesman based in London, also wouldn't comment. Discussions about the offers will continue with all parties, British Energy said in the statement. British Energy said March 17 it was in talks that could lead to a merger or takeover, after meeting with more than 10 companies about potential partnerships to develop nuclear plants on its existing sites. British Energy owns eight nuclear reactors and generates about one-sixth of the Britain's power. E.ON AG, Germany's largest utility, is interested in building nuclear power plants in the UK, Chief Executive Officer Wulf Bernotat said May 14. He wouldn't say whether E.ON will bid for British Energy. RWE AG, Germany's second-biggest utility, ruled out a full takeover of British Energy after Vattenfall AB, its partner of choice for a joint bid, pulled out, Handelsblatt reported May 9, citing unidentified people familiar with the matter. RWE's Julia Scharlemann declined to comment on Friday.
