British Energy Group (BGY.L: Quote, Profile, Research) said on Monday it was in talks which could lead to a tie-up or an offer for the 6.7 billion pound company, boosting its shares.British Energy has been talking to several international power firms in recent months about partnerships to build new reactors after the UK government gave the go-ahead to a nuclear renaissance.
It was from these talks that the possibility of a closer tie-up developed, a source close to the situation said.Shares in British Energy, which generates about a sixth of the country's electricity, shot up nearly 19 percent to an 18-month high of 680 pence and was up 11.9 percent at 639-1/2p by 9:39 a.m., valuing the group at around 6.7 billion pounds.
"The board announces that the company is in discussions with interested parties in the context of its future and its plans to take a pivotal role in any new nuclear programme," British Energy, which is 35-percent owned by the UK government, said in a statement.British Energy, which runs eight of the country's ten reactors, nearly collapsed in 2002 due to weak power prices, but was bailed out by government and its shares were relisted on the stock exchange in 2005.