EDF Extends Offer for British Energy, Holds 92.7%

By Tara Patel

Dec. 8 (Bloomberg) -- Electricite de France SA, Europe’s biggest power producer, extended the cash portion of its 12.5 billion-pound ($18.7 billion) takeover offer for British Energy Group Plc to Jan. 5 after acquiring 92.7 percent of the company.

British Energy stockholders representing about 1.49 billion shares accepted the bid, including those with 207.6 million shares opting for the so-called Contingent Value Rights, EDF said today in a statement. The CVRs give holders a slice of profits from existing U.K. nuclear power plants run by the East Kilbride, Scotland-based company.

The French utility, whose holding in British Energy includes stakes from Invesco Ltd. and the U.K. government, said last week it expects the purchase to be cleared by the European Commission by Dec. 22 and become unconditional early next month. In the meantime, EDF will submit concessions for the deal to competitors and customers in the U.K. for market testing.

The Paris-based utility, the world’s biggest operator of nuclear plants, agreed in September to buy British Energy to become the U.K.’s largest power producer and gain control of eight sites to build reactors. The purchase will add commercial clients to the 5 million households supplied by EDF’s U.K. unit.

The bid for British Energy is part of EDF’s strategy to expand its nuclear operations outside France, where it operates 58 reactors.

Last week, EDF offered to buy half the atomic business of Baltimore-based Constellation Energy Group Inc. for $4.5 billion. The acquisition would give the French company generation capacity in North America and scupper a competing bid from billionaire Warren Buffett’s MidAmerican Energy Holdings Co.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net