Can Centrica Snatch British Energy
While the British Energy EDF seems long dead and buried it looks as though Centrica, a junior partner in the original takeover deal, might fancy its chances of taking the group over by itself. It has also emerged that the group had put forward the idea of an all share merger earlier this year but this seems to have been discounted because of a lack of cash in the offer.
The signs are that the government is desperate to get rid of its 30% plus stake in the business, and the £4 billion plus windfall this could bring but how Centrica might structure a deal to give the government cash remains to be seen. This could turn out to be a very opportune moment for the group to put forward an alternative offer and even if it was an all share offer it could always arrange a placing of the shares the government would take on.
Time will tell but while the EDF deal seems to have gone by the way, for now, there are signs that the government is pulling out all of the stops to try and land a big windfall for its shareholding.
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