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16 June 2008 - The £11bn ($21.5m) auction of British Energy could be abandoned in favour of a series of joint ventures with Europe's leading power companies, according to plans being considered by the UK nuclear operator.
The Daily Telegraph reported that a joint-venture strategy could take centre stage in British Energy's plans after the company this week rejected an approach of about 700p a share from France's EDF, believed to be the last bidder left in the auction.
Plans to create a series of joint ventures are reportedly supported by at least 25 per cent of shareholders, many of whom had been lobbying the British company to reject EDF's offer.
British Energy, which is 35 per cent owned by the Government and operates eight power stations around the country, drew up plans for a series of joint ventures last year before it opted to auction itself off amid interest from would-be bidders.
A number of Europe's utility giants, including Germany's RWE and Spain's Iberdrola, have since pulled out of the running, claiming that British Energy's price demands were too high.
Shareholders have voiced concerns that offers from rival companies have not taken into account the effect of soaring energy prices on British Energy's revenues. Some analysts have valued the long-term value of the company at closer to £11 a share.
Suez, the French power company which is expected to complete its merger with Gaz de France next month, is thought to have considered a bid, but it remains unclear whether it is still interested.
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