Friday was the deadline for bids for the British government's 35.2 percent stake in British Energy, the biggest British power generator, a privatised company providing nearly 19 percent of Britain's electricity, and owner of eight of 10 nuclear British power stations.

By the weekend EDF was reported as the only bidder so far.

German power giants RWE and E.ON plus Spain's Iberdola have been reported among other likely bidders for British Energy.

No EDF bid figure was cited with the bid announcement. But London's Daily Telegraph newspaper said Friday EDF and its advisers, Merril Lynch, were putting together a pitch worth between 9.2 billion pounds (11.7 billion euros, 18 billion dollars) and 10.2 billion pounds.

Interest from abroad comes at a time when Britain plans a new generation of nuclear reactors and would open up a particularly lucrative market.

Purchase of British Energy would enable EDF, already Europe's leading electricity producer, to strengthen yet further its domination of the European market.

EDF is reported to be quietly purchasing land in Britain near nuclear sites in what look likes plans for investment in Britain one way or another, whether it gets British Energy or not.

The British energy sector has long been privatised, and the British treasury now holds only 35.2 percent of British Energy.

The French state by contrast owns 84.9 percent of EDF.

EDF, which already has a stake in British energy through a subsidiary there, has bought land near two existing nuclear sites in England and Wales, the Financial Times said Friday.

It assessed that the "stealthy purchases" could allow it to build up to three new atomic power stations, regardless of whether it is successful in its bid for British Energy.

The FT described EDF's acquisition of the land as "a move of strategic audacity" which "positioned itself to take a leading role in Britain's nuclear future irrespective of what happens to British Energy".

The British government approved a new generation of nuclear power stations in January, signalling that they were likely to be built on or near existing sites primarily by private firms.

EDF currently faces a fairly bleak growth rate on its regulated domestic market and makes no secret of its desire to expand elsewhere in Europe.

British Energy would thus be a highly desirable acquisition for EDF which already controls nearly half of European nuclear capacity.

Control over eight of Britain's 10 nuclear power stations would enable the French company to have a powerful role in the planned development of a new generation of nuclear reactors in Britain.

But EDF's ambitions often come in for criticism by competitors who complain that it itself is protected against takeover bids by the French state's majority stake in it, and by its near monopoly position because of regulated French electricity prices.

Market analysts say British plans for a new generation of nuclear reactors open the way for punters to the only truly deregulated energy market in Europe.

Patrice Lambert de Diesbach and Atallah Estephan, market analysts with Credit Mutuel-CIC, however do not believe the British government will allow just one new owner to control British Energy.

They say this would be nonsense when the aim was to use the expertise of foreign nuclear companies to import greater competition benefiting British consumers.

Emmanuel Retif, analyst with Raymond James, says EDF "reduces its chances of success by making an offer alone and could even lose everything if in addition doors are closed in Spain," since the Spanish power company Iberdola was trying to form a consortium.

burs/da/gk

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