| March 18, 2003 17:01 Collapse of U.S. Sale Talks Deals Blow to British Energy By Tim Webb, Sunday Business, London Mar. 16--British Energy's hopes of fulfilling the terms of its UKpound 13 billion (E19 billion, $21 billion) rescue package were fading this weekend after it emerged that the nuclear generator has called off negotiations to sell its US subsidiary Amergen. Exelon, its partner in the nuclear generation joint venture, issued a statement saying that it had broken off discussions about buying British Energy's 50 percent stake "some time ago". It said that it had offered the collapsed nuclear generator $200 million to take control of the venture, but British Energy had held out for $300 million. "There are no current discussions between British Energy and Exelon relating to a sale of their interest in Amergen to Exelon," the statement to the Securities and Exchange Commission added. British Energy must sell the stake by the end of June under the terms of the restructuring package that the British government offered in November. If it fails, the company would be put into administration. The move comes after British Energy and Exelon terminated sales talks with potential third parties for their respective stakes earlier this month. Both said none of the bids matched their valuations. It effectively left Exelon, which has first refusal on the assets, as the only bidder. |