EDF close to takeover deal

French energy firm EDF is said to be close to winning the shareholder support it needs to seal a £12 billion takeover of British Energy.

EDF has reportedly improved the terms of its previous bid and is now hopeful of swaying fund manager Invesco - owner of 15 per cent of BE - into ending its opposition to its proposed takeover of the nuclear power generator.

Combined with the Government's share, the French company could then count on sufficient support for British Energy's directors to recommend acceptance.

The other rebel shareholder, M&G, is still thought to be pushing for a BE merger with British Gas owner Centrica.

In July, EDF offered 765p for each British Energy share, valuing the company at about £12 billion. Shareholders could choose to take the cash, or 700p plus a slice of the company's future profits.

This was rejected by Invesco and M&G amid concerns the deal undervalued British Energy at a time when the value of energy assets was rising. However, oil's fall from July's peak is likely to have persuaded some investors to be more flexible over price demands.

EDF is majority owned by the French Government and a takeover would put the UK's nuclear destiny in foreign hands. EDF would have a leading role in the next generation of UK nuclear power stations, which are likely to be built on BE's existing sites.

If an EDF takeover goes ahead, British Gas owner Centrica is expected to take a minority stake in the business.

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