Nuclear operator British Energy has agreed to be taken over by French utility EDF for around 12.4 billion pounds ($24.61 billion), a source briefed on the matter said on Friday. The source told Reuters EDF had agreed terms of the offer of about 775 pence per share with British Energy after months of talks, and hoped to finalize the deal on Tuesday or Wednesday of next week. EDF is also looking to agree a deal with British Gas-owner Centrica for the UK firm to take a minority stake in British Energy, although the terms have yet to be decided - causing a delay in the formal announcement, the source said. British Energy shares were around flat at 728 pence at 1129 GMT, valuing the company at around 11.7 billion pounds ($23.22 billion). An analyst, who did not wish to be named, said there were still concerns in the market that the deal could collapse despite the advanced stage. The 775 pence price would value British Energy at 12.4 billion pounds including a 35 percent stake owned by the British government. The company has been in play since the government gave the green light to the building of a series of new nuclear plants in January. On Thursday, British Energy confirmed it was in “advanced discussions with one party” but said there was no certainty the discussions would lead to an offer being made. Centrica, British Energy and EDF all declined to comment. Analysts said that although the price was significantly higher than an EDF proposal of below 700 pence, which industry sources said was rejected earlier this year, it was still low compared to many ways of valuing the company. “It's ludicrously low,” Evolution analyst Lakis Athanasiou told Reuters. “Based on $100 a barrel oil until 2012, and $70 a barrel thereafter, we value British Energy's existing assets at 760 pence,” he said. “That would be a good price for existing assets.”
