The news source reported an unconfirmed rumor that Invesco and Prudential, which together account for 22% of British Energy, prevented the deal from going ahead as they were discontented with EDF’s offer price options of either a GBP7.65 per share cash bid or a GBP7 per share cash offer and other further performance-linked payments.
EDF is reported to be still interested in acquiring British Energy, with the possibility of further negotiations with the UK-based nuclear power generator’s board, suggesting that the proposed takeover has not been abandoned.
The announcement by EDF to drop its plans to acquire British Energy is expected to upset the UK government’s nuclear plans. The government could strike smaller deals for the construction of individual nuclear power stations if EDF’s takeover of British Energy cannot be resuscitated or if another suitor cannot be found, according to The Times.
