British Energy may reach deal next week

LONDON (Reuters) - The UK could reach a deal to sell its 35 percent stake in nuclear operator British Energy BGY.L as early as late next week, sources familiar with the matter said on Friday.

French utility EDF (EDF.PA) has made a bid of more than 680 pence per share for the Scotland-based power generator company, valuing it at more than 10.8 billion pounds. EDF is raising an 11.5 billion pound loan to back its bid, banking sources said on Friday.

The UK government is hosting a summit on new nuclear plants on Thursday and there may be an announcement then, said the sources, adding that the timing could still slip or the deal fall through.

EDF and British Energy have been haggling about price since EDF submitted the only takeover offer for British Energy by a deadline last month.

However, the UK government is keen to sell its 35 percent stake and this could put pressure on British Energy's board to accept an offer from EDF, despite it being below the current share price.

Germany's RWE (RWEG.DE) and Spain's Iberdrola (IBE.MC) have also had contact with British Energy and could yet also bid, said the sources familiar with the matter.

EDF and British Energy declined to comment.

(Reporting by Mathieu Robbins, editing by Will Waterman)