Centrica plans merger with British Energy: report

0 Comments | AFP, August, 2008

LONDON (AFP) — British electricity and gas supplier Centrica is mulling a merger with British Energy, after French peer EDF walked away from a deal for the nuclear power operator, a newspaper report said on Sunday.

The Sunday Telegraph, which quoted an unnamed source close to the company, said it was sounding out institutional investors about a possible all-shares merger. Centrica was unavailable for comment on the story.

A combination of British Energy and Centrica would have a stock market value of 22.5 billion pounds (28.5 billion euros, 44.4 billion dollars), according to their closing share price levels before the weekend.

British Energy faces an uncertain future after talks collapsed on Friday about a potential multi-billion-pound takeover from...