Hopes of a bidding war for nuclear power generator British Energy faded yesterday as sources said Germany's RWE would not make a bid on the preliminary deadline, hitting its shares.
Spain's Iberdrola also did not make an offer for British Energy yesterday.
When the UK government put its 35 per cent stake in the firm up for sale, many of Europe's largest utilities showed interest. But as yesterday's deadline loomed, some fell
away and none seemed set to offer more than the recent trading price of the shares.
British Energy shares ended down two per cent at 701p valuing the Government's stake at about £3.5bn.
Sources said that German utility RWE, which was set to bid less than 700p a share, would not make an offer yesterday after Swedish partner Vattenfall pulled out of the auction following pressure from its owner, the Swedish government.
France's EDF, expected to offer substantially less than 700p per share, was said to have made an offer without a partner.
The UK's main gas provider, Centrica, the only British firm still in the race, is not expected to improve on an indicative all-share offer of under 700p, an industry source said ysterday.
The company needs power generation capacity to supply its customers but is widely seen as too small to make its own cash bid and would need a partner.
Yesterday's second-round bid deadline was said to be for formal offers with financing details. Later bids could follow.
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