EDF may bid for B.Energy

By Mathieu Robbins

LONDON (Reuters) - Europe's biggest power company, Electricite de France (EDF.PA), may try to buy British Energy BGY.L but is unlikely to match a rival's 700 pence-per-share proposal, a source close to the matter said on Friday.

Utilities across Europe are stalking British Energy, the country's only private nuclear power generator, as the government considers selling its 35 percent stake and looks to expand nuclear power use.

"EDF will maintain price discipline," the source said, adding EDF hoped to use its record as Europe's biggest nuclear operator to win over the British government.

The source said French state-controlled EDF, the world's biggest producer of nuclear power, was considering a bid pitched below 700 pence a share. A report in the Times newspaper earlier on Friday said it was planning to offer above that level.

The source added EDF had not decided whether to make an offer for the whole company and may opt to bid only for the UK government stake.

Germany's RWE (RWEG.DE) has made a bid proposal of just under 700 pence a share in cash and Centrica (CNA.L) has proposed an all-share deal, sources close to the matter told Reuters on Thursday, valuing British Energy at up to 11 billion pounds.

EDF and British Energy declined to comment.

Both RWE and EDF are considering pairing up with Centrica for any offer, sources familiar with the matter said this week.