British Energy has not talked with Centrica-source

LONDON, Sept 5 (Reuters) - British Energy BGY.L has not held merger discussions with British Gas-owner Centrica (CNA.L) and is still talking exclusively with France's EDF (EDF.PA), a source familiar with the situation said.

"No discussions between Centrica and British Energy about a merger have taken place," the source told Reuters on Friday.

Earlier fund manager and major British Energy shareholder M&G -- one of the two key shareholders who rejected EDF's 12 billion pound ($21.10 billion) bid on August 1 -- said it had talked to Centrica about the possibility of a rival deal. (Reporting by John Bowker; Editing by Greg Mahlich)