The stalled takeover of nuclear power firm British Energy by France's EDF could be back on within weeks, it was reported yesterday.
The French power giant has held talks with some of BE's biggest investors who scuppered a £12bn deal in July, the report said.
EDF is said to be hopeful of clinching a deal in the next two weeks before its board meeting on September 17. BE produce
s one-sixth of the UK's electricity.
Discussion between EDF and Invesco Perpetual, BE's second biggest shareholder with a 15 per cent stake, are reportedly at an early stage although M&G, which has 7 per cent, has not entered discussions.
EDF has put forward a straight cash bid but reportedly offered to improve the potential payout under a cash and paper alternative which would give shareholders a bigger slice of potential profits as energy prices soar.
But oil's fall from July's peak has also persuaded some investors to be more flexible over price demands, the report said.
EDF is majority owned by the French Government and a takeover would put the UK's nuclear destiny in foreign hands. EDF would have a leading role in the next generation of UK nuclear power stations, which are likely to be built on BE's existing sites.
The Government, which owns 36 per cent of the company, had been prepared to accept the French firm's original offer.
If an EDF takeover goes ahead, British Gas owner Centrica is expected to take a minority stake in the business.
BE declined to comment on the report.
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