Bidders eye government's Urenco stake

LONDON (Reuters) - Bidders keen on buying the government's share in uranium enrichment firm Urenco have contacted its former chairman about forming a consortium to table an offer for the stake, reported the Sunday Telegraph.

It said Neville Chamberlain, who was chairman of Urenco from 2002 to 2005, told the paper he had held "discussions with various potential bidders" and would "not be surprised if a bid emerged" for the stake, which could be worth up to 4 billion pounds.

Britain holds the stake through British Nuclear Fuels, but the shares will be transferred to the government on November 1 as part of the strategy to break up and privatize BNFL.

Several investment banks are already working on possible deals, said the paper.

No-one at the department for Business, Enterprise and Regulatory Reform could immediately be reached for comment.

(Editing by David Holmes)