M&G Denies Agreement With EDF Over British Energy, FT Says

By Angela Macdonald-Smith

Sept. 4 (Bloomberg) -- M&G Investment Management Ltd., one of the biggest shareholders in British Energy Group Plc, denied a report it reached an agreement with Electricite de France SA over an increased offer by the French company for the nuclear power generator, the Financial Times reported.

M&G and fellow British Energy shareholder Invesco Ltd. last month forced Electricite de France to drop a 765 pence-a-share cash offer, arguing it was too low, the newspaper said. Dow Jones Newswires reported yesterday Electricite de France reached an accord with the two shareholders to improve its bid.

No discussions have taken place between M&G and Electricite de France about the offer for British Energy, the Financial Times reported, citing M&G. M&G said the French company's offer undervalues British Energy and would prefer an opportunity to consider a proposal from Centrica Plc, it said.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net