Gas, Water & Multiutilities(7570)

LONDON (ShareCast) - German utility giant RWE will not bid for nuclear power group British Energy, according to German newspaper Handelsblatt today, a claim it first made a week ago.

Companies hoping to buy the British government’s 35% stake in the UK firm must get their bids in by the end of today.

It added that there was no financial sense in a takeover as Swedish utility Vattenfall won’t make a joint bid with RWE after the Swedish government, which includes the anti-nuclear Centre Party, vetoed the idea.

But French power giant EDF is expected to table a takeover offer for the whole comnpany pitched at between £9.2bn and £10.2bn, reckons the Telegraph.

The UK Government is said to be hoping that this will kick-start development of a new generation of nuclear power stations.

There’s also talk that Spain’s Iberdrola, which owns Scottish Power, could get into bed with British Gas-owner Centrica to launch a joint bid.

Rumours that some bidders may not meet the deadline are also doing the rounds, although it is thought that there may be some flexibility here.

• News Channel