The nuclear power company, which operates eight nuclear plants and a coal-fired power station at Eggborough, East Yorkshire, is understood to have received takeover or other approaches from French utility EDF, France's Suez and a consortium made up of Germany's RWE and Spain's Iberdrola.

British Energy said it had received proposals from several parties wishing to make a full offer for the company but it didn't name the potential bidders.

British Energy said the approaches are at an early stage.

Suez said it had not submitted a bid for shares in British Energy. It is understood Suez has been in contact with the company, but is more interested in building a relationship that would allow it to build power plants in the UK rather than making an offer.

EDF, RWE and Iberdrola declined to comment.

British Energy's eight ageing power plants, built since 1965, have been hit by corrosion and other technical problems in the last two years.

But the company is expected to benefit from Government plans to build more nuclear power plants in order to make up the predicted electricity supply shortfall.

The Government is keen on power plants which do not emit large amounts of carbon dioxide despite concerns about the dangers of nuclear waste.

British Energy is understood to have received two proposals since EDF made an offer last week.

Iberdrola, which owns Scottish Power in the UK, does not want to lead its own bid. Its partner RWE did not made an offer by last week's second-round deadline as its original partner Vattenfall had pulled out of the process.

Suez said in April it would not decide on major investments until its ongoing merger with rival Gaz de France is complete.

British Energy said it has reviewed the proposals and has decided discussions should continue with all parties concerned.

Both RWE and Germany's E.ON have said they are interested in building new nuclear power plants in the UK.

It is understood that Centrica, the only British firm in the race, has not made a bid. The company, which is the UK's largest gas supplier, would have difficulty funding a takeover on its own and would probably need to join a consortium. It is thought that Centrica is still in talks with EDF about possible co-operation in any deal.

European energy giant EDF is seen as the favourite to land the company, given its experience in running nuclear power stations in France.

EDF already operates 19 nuclear sites in France, where it supplies more than 80 per cent of the country's power needs. The group also has extensive operations across Europe.