anyone know why this share is on the up, can`t see any news

Spot on ssanebs, but are the shorters squezeed out?. Anyway from Citywire............

Wednesday Closing Market: British Energy fires up
Published: 17:56 Wed 4 Feb 2004

By Graeme Davies, Companies Correspondent
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Fresh evidence that the US manufacturing and service sectors are thriving restored confidence late in a day that saw remarkably high trading volumes in British Energy.

The day's highest riser was media giant Reuters with a 10.25p gain to 338p but most of the interesting action happened much lower down the market at British Energy. The embattled company put on 2.34p or 30% to 10.25p as it became the second heaviest traded stock on the whole market.


Yesterday's news that US hedge fund Appaloosa had grabbed a 4.6% stake was bolstered this morning by confirmation the company had reached settlement over a long standing dispute with Siemens under which the German company has to pay 18.3 million.


The company issued a statement saying it did not know why the shares had risen so much. It may have been helped by well-followed trader Simon Cawkwell, known as Evil Knievil, who said he expected the share price to reach at least 100p.


regards GF.

British Energy PLC
05 February 2004

05 February 2004



British Energy plc



BRITISH ENERGY PLC (THE 'COMPANY') - SECTION 198 NOTICE IN RESPECT OF THE
ORDINARY SHARE CAPITAL (THE 'SHARES') OF THE COMPANY



This notice is to notify you of certain information in relation to Appaloosa
Investment Limited Partnership I ('AILP') and Palomino Fund Limited ('Palomino')
both of 26 Main Street, Chatham, NJ 07928, USA pursuant to the requirements of
s.198 et seq., Part VI of the Companies Act 1985.



As of 4 February, 2004, AILP no longer has a notifiable interest in the Shares
for the purposes of s.198 et seq., Part VI of the Companies Act 1985.



As of 4 February, 2004 Palomino no longer has a notifiable interest in the
Shares for the purposes of s.198 et seq., Part VI of the Companies Act 1985.


This notice of interest is given in fulfilment of the obligation of each of AILP
and Palomino under the requirements of s. 198 et seq., Part VI of the Companies
Act 1985.


This information is provided by RNS
The company news service from the London Stock Exchange

Buy British Energy argues Evil Knievil

British Energy has paid for many a lunch over the past couple of years. I have been shorting it aggressively Convinced that it was going bust I regarded it as the quickest way of making money since Cherie Blair and her ghastly husband turned freeloading into an art form. But, while the liar-in-chief and the wicked witch continue will continue to carry on sponging forever, other things have changed and I am now aggressively long of British Energy to the tune of five million shares. I admit my timing was not perfect - I am only running at break-even at this stage but I am expecting to trouser it in a big way over the next six months. In putting together this bull case I am most indebted to the publication Utilities Week - a must read in every household and whose words I have cribbed liberally. The Bail Out


British Energy runs nuclear power stations. As such it has high fixed costs and always has a potential liability for decommissioning its plants when they come to the end of their useful lives. Its problems started when a slump in electricity prices meant that it was not covering those fixed costs which exposed the fact that its borrowings were unsupportable. It was this that allowed me to profit so greatly on the short tack.
Then the Government stepped in with a "rescue" plan. Surprisingly for a body which shows an ability to waste taxpayers' cash of unmatched proportions this did not involve a huge bail out. Instead it involves the Government, bond-holders, BNFL, other creditors and an array of vastly overpaid parasites (i.e. advisors on a success only fee) reconstructing the business such that equity holders will be diluted to obliteration. This motley crew are determined that their proposed reconstruction goes ahead and the board seems happy to play ball but any such proposal must be agreed by shareholders and I think that the times they are a changin'.
If the reconstruction proceeds, existing shareholders will be diluted to 2.5% of the equity plus warrants to buy a further 5%. Since 65% of free cash flow will be diverted to the Nuclear Liabilities Fund (i.e. decommissioning), this 7.5% becomes an economic interest of just 2.6%. This is clearly not an attractive proposition and if it goes through the shares, at 7.65p may be overvalued. However, I think that even on the current reconstruction terms, 15p-25p will prove to be the eventual outturn.
In the interim results, announced in December, and again with the latest quarterlies British Energy warned shareholders that if they did not support the proposed reconstruction by approving either a scheme of arrangement or the disposal of the company, the shares would be de-listed and the reconstruction completed anyway. But if it can be shown that the company is a going concern without the reconstruction, Turkey's won't vote for Christmas and shareholders (who have to approve any deal) will block it. The Upside from a No Vote


The disposal of British Energy's 50% interest in Amergen, netted 160 million pounds. This repaid the 94 million owed to the Government so removing its ability to force insolvency by calling in its loan. It leaves three groups of creditors to be satisfied from the remaining 66 million pounds, the 20 million pounds of other cash, any cash flow from trading since 12th December and any cash that can be released from the 359 million pounds tied up in trading collateral.
Group one are the bondholders, owed 408 million. The 2003 bonds have matured, but British Energy can probably pay the 110 million pounds owed to the holders from its cash. The 2006 and 2016 bonds may be in default even though their interest continues to be paid. They are very generously treated in the proposed reconstruction, as a result of which the bonds are trading well above par. They may have the right to put British Energy into receivership if the reconstruction is voted down, but it would not be in their interest to do so. In a liquidation, they would receive very little, whereas, if British Energy continues to trade, they will continue to receive interest and can be repaid in full on redemption.
The second group of creditors are the Banks who lent 475 million pounds to finance the purchase of the 2000 MW coal-fired Eggborough power station. They are being offered 150 million pounds in new bonds and 14% of the new shares being issued, worth some 150 million pounds at 5p each. The value of Eggborough has risen significantly in the last year. It is half the size of the Drax power station, and, like Drax, is being fitted with a Flue Gas Desulphurisation plant, due for completion this year. In December, Drax's creditors rejected an offer by International Power to buy up to 36% of its equity and 15% of its debt. Since then, the value of Drax's debt in the secondary market has continued to rise, and Drax is now valued in the market at about 1.25 billion pounds . This suggests that Eggborough is worth closer to 600 million pounds than the 300 million pounds it is valued at in the secondary debt market. If the reconstruction fails, the Eggborough banks will be significantly better off whether or not the power station is sold.
The third group of creditors are the three parties claiming 316 million pounds in relation to onerous trading contracts. Two of the contracts, accounting for half the total, were terminated in 2003, making their claims payable. The third contract, with Teeside Power, may be renegotiable. The sharp rise in electricity prices makes this contract to buy high-priced electricity no longer a financial liability, but 158 million pounds must still be found to satisfy the other two.
[Image ignored] [links to https://www.t1conferences.com]
In the short term, British Energy would struggle to satisfy these creditors, but given time, the prospects look better. 75 million pounds was absorbed into working capital in the first half of 2003/4, which may be reversible. The Board is "exploring initiatives to reduce the demand for trading collateral," which should diminish as the forward sales run out. Halving the collateral would release 180 million pounds. And Critically...


The strength of electricity prices means that British Energy will be highly cash-generative when it can take advantage of current prices, and only half of output for the year to 31st March 2005 has been sold forward at low prices. Implementation of the Emission Trading Scheme, due to start on January 1st, 2005, could add a further 10% to electricity prices, increasing profits and cash flow by 160 million pounds per annum. What British Energy's shareholders need is time.
Fortunately, the bureaucracy and delays of the European Union are working in our favour. The EU is not expected to reach a decision on the restructuring until the middle of 2004, delaying a shareholder vote until the Autumn. With luck, if it runs true to form the EU will take longer, postponing the vote until 2005. This gives more time for cash flow to build up and for the prospects to look more secure. It also gives larger shareholders time to prepare an alternative plan. This is necessary because British Energy is firmly committed to the restructuring. Shareholders cannot look to their Board to safeguard their interests and indeed should think about handing out P45s liberally to the top table.
While negotiating with the creditors is the short-term priority of such a plan, there are other considerations. If the reconstruction is voted down, it is quite possible that the government will force the reconstruction through by Act of Parliament, leaving shareholders with nothing. But does this sordid little Government really want to repeat its Railtrack fiasco with an election looming?
The key to this gamble - and I admit it is such - is that electricity prices are increasing which makes a big difference to cashflow. If shareholders are given time to work out an alternative plan, British Energy will still need to raise cash via a rights issue but it is not ludicrous to suggest that current investors will be left owning 65% of the company rather than 2.5%. In other words the shares would be worth 150p each and possibly rather more.
There are obvious risks. The board might steamroller shareholders into accepting a deal that is patently not in the interests of shareholders. Electricity prices might fall. Big shareholders might cave in cravenly. The EU might whizz through approval giving shareholders no time to organise. Okay, there is no risk of the EU being efficient that was my little joke. But there are risks. If I am wrong these shares could conceivably be overvalued but could even in this scenario head up towards 20p. But if I am right 150p here we come. On a risk reward basis that looks good to me. Key Data


EPIC: BGY
NMS: 150,000
Market Cap: 47 million pounds
Market: Full
Spread: 7.6-7.7p

10 is likely this year. IMO

" Nuclear power generator British Energy Group PLC is now on track to correct all the problems at some of its plants and re-vitalise its output estimates.
Chief executive Bill Coley said it would now be "totally incorrect" to assume continuing unreliability of reactors at its Hinkley Point and Hunterston sites will result in higher losses from planned outages or from unplanned shutdowns.
The group reiterated that there is still ongoing work on the recently reported boiler problems at its Hinkley Point B and Hunterston B plants, however progress has been significantly better than previously expected and other plants were performing above expectation.
Coley maintained company had no immediate plans to sell its Eggborough coal-fired station in North Yorkshire. He said the group would run Eggborough at least until 2010 when banks have an option on the plant, although BE has pre-emption rights that would supersede that.
"If we did not have an Eggborough, we would need something like it," Coley said.
BE said it wants to take advantage of the government's intention to build new nuclear plants, saying it aims to position itself for nuclear new build and plans to undertake preliminary work to identify options in that area.
Basic earnings per share lifted to 33.2 pence from 8 pence. The company said it expects to pay an annual base dividend of 80 mln stg, equivalent to 13.6 pence per share fully diluted, after its annual meeting in July.
BE added that it would also consider a special distribution each year in February following the third quarter results announcement starting in 2008.
"The amount of any special distribution will represent any surplus cash flow eligible and available for distribution at the time," it said.
philip.jones@afxnews.com paw/slm/paw/slm

I wonder why they didn't buy the government stake at $4-5 before bidding for the company.
Those who bought part of the stake from the government at about 5 should be happy....That's called the power of advisers!! Does anyone remember who advised the government and who bought the share?

$21bln is too cheap for BGY IMO.

EDF is buying land CLOSE TO BRITISH ENERGY SITES. They are sure that they can buy British Energy sites to build and expand their acitivities.....ALL IMO

EDF is buying land CLOSE TO BRITISH ENERGY SITES. They are sure that they can buy British Energy sites to build and expand their acitivities.....ALL IMO
They could buy somewhere away from BGY sites to make sure they get the permission.

oil at $129 should push this to 12 soon. IMO

oil at $120 should help this

A NEW BIDDER...... THEY ARE ENERGY TRADERS...


Scottish & Southern eyes British Energy bid together with RWE - report
AFX


LONDON (Thomson Financial) - Scottish & Southern Energy Plc. has emerged as a surprise bidder for British Energy Plc., The Daily Telegraph has reported.

The newspaper said the group is in talks with Germany's RWE AG. regarding mounting a joint bid, citing sources close to the situation.



simon.meads@thomsonreuters.com

sjm/lam

Oil at $130 should push energy prices higher.... BGY will not face higher cost though!! it should just gain more than ever.

http://www.moneyam.com/action/news/showArticle?id=3031575

PE is 18 now. It should move to around 9 next year. most of their electricity was pre-sold. BGY should see increased production and higher sale prices at the same time.