LONDON (AFP) — London shares rallied on Friday as investors eyed a continent-wide battle for British Energy in the wake of solid gains on Wall Street overnight.
In midday trading, London's FTSE 100 index of leading shares was up 1.43 percent at 6,341.50 points.
All eyes were on nuclear power operator British Energy, which on Friday said that it had received several offers from parties interested in the company as Britain prepares major new atomic energy investment.
Recent press reports have said state-owned French power company EDF had submitted an offer for British Energy and bought land near two existing nuclear sites in England and Wales.
Friday is the deadline for bids for the government's 35.2 percent stake in British Energy, which provides nearly 19 percent of the country's electricity. It owns and operates eight nuclear power stations.
German power giants RWE and E.ON plus Spain's Iberdrola have also been named as possible bidders. Any company bidding for the government's stake must table an offer for the rest of British Energy under takeover rules.
In afternoon deals, the share price of British Energy soared 6.69 percent to 725.5 pence. EDF gained 0.15 percent to 67.64 euros, RWE climbed 0.63 percent to 77.75 euros, E.ON won 0.94 percent to 132.08 euros, while Iberdrola fell 0.51 percent to 9.72 euros.
Aside from the energy sector, British Airways rocketed 5.58 percent to 236.5 pence after the airline said net profits more than doubled in 2007/08 as it cut costs to overcome soaring fuel costs.
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