It is claimed that the government, which owns a 35.2% stake in British Energy (BE), is not agreeing to the idea of one body claiming complete ownership.
Though several energy firms such as Spain’s Iberdrola, Germany’s RWE and France’s Suez were expected to bid for BE, they failed to meet the deadline. But the government is confident there are several interested parties, who are likely to bid for BE’s individual assets.
According to sources who are familiar with the developments, the government may sell a maximum of only six sites to the winner of the bid, leaving options of other companies, such as Centrica, to buy the remaining two sites. However, it is claimed that Centrica, which is interested in acquiring a part of BE, is reportedly planning to make a deal with the bid winner to acquire assets post-sale.
The government is likely to pressurize the successful bidder, with the French energy giant EDF firmly in pole position, and force the bidder to divest some interests.
It is reported that the government can use its power on planning applications to force a bidder to team up with a rival or to force a bidder to sell a major part of the business to another body post-sale.
Rothschild, which is managing the auction, is ready to accept late bids filed this week. However, according to an industry source, the government is unable to decide whether to favor Centrica or allow EDF to buy the whole of BE.
