UPDATE 5-British Energy gets bid approaches, shares jump

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By Mathieu Robbins and Chris Wills

LONDON, May 16 (Reuters) - The UK's biggest electricity producer, British Energy BGY.L, said on Friday it has received several takeover proposals which value it at more than 10.8 billion pounds ($21 billion).

Sources briefed on the talks said the company is in contact with three parties: EDF (EDF.PA), a group made up of Germany's RWE (RWEG.DE) and Spain's Iberdrola (IBE.MC), and France's Suez (LYOE.PA).

The nuclear generator had received just one offer, from EDF, by a deadline for second-round bids last Friday, said the sources. That bid was below 700 pence per share, they added.

However, RWE and Iberdrola have since expressed interest in making a joint bid, one of the sources said on Friday -- though no decision has been taken on whether to proceed with an offer.

Suez is also in talks with British Energy but the company is unlikely to bid as it has said it will not undertake such major deals until it has completed a merger with rival Gaz de France.

A source briefed on Suez's thinking said the company is more interested in taking part in UK power plant construction than in buying British Energy.

Hence it is pursuing a co-operation agreement with the UK generator, though it has not ruled out making an offer in a few months if the company has found no buyer, said the source.

The stock was up 5.2 percent at 715.5 pence per share at 1430 GMT.

British Energy said it had received proposals from several parties wishing to make a full offer for the company including the Nuclear Liabilities Fund, which represents the government's 35 percent stake. It did not identify the potential bidders.

British Energy, based in East Kilbride, Scotland, said the approaches are at an early stage and each requires several weeks of further development.

Suez said on May 6 it would not decide on major investments until its ongoing merger with rival Gaz de France GAZ.PA is complete.

"Suez made its position clear this month and the situation has not changed since," said the source briefed by Suez.

British Energy declined to comment. Its eight power plants, built since 1965, have been beset by corrosion and other technical problems in the past two years.

But the company is expected to be a key beneficiary of UK government plans to build more nuclear power plants to resolve a predicted electricity supply shortfall.