It is believed that the indicative all-cash offer of close to 700 pence a share was made several weeks ago. In case the offer from RWE is accepted, the British government is likely to receive GBP4 billion for its 35% stake in British Energy.
A formal auction for British Energy has not been initiated yet. In addition to RWE, firms such as EDF and Centrica are understood to be interested in bidding for the company.
Nevertheless, it is not clear whether the government will give the green signal to a single bidder. In a recent statement, Malcolm Wicks, British Energy Minister, maintained that the government would not accept the emergence of a single monopoly player in the UK nuclear industry.
