Recent rumours of a takeover or break-up of British Energy are exaggerated.
The UK nuclear generator, with an enterprise value of £5bn, is still in effect controlled by the government. In return for taking on the long-term liabilities associated with decommissioning nuclear plants, the state has a call on BE's net cash flows - 65 per cent from 2004 to 2007, and now 35 per cent. It can convert this right into equity at any point and could potentially block unwanted interest. Whether it would, though, is a moot point. While some potential suitors - Russia's Gazprom, for example - would be politically less appealing than others, the UK government appears to feel sanguine about foreign ownership even of such strategic assets.
