British Energy acts against rebel

AILING nuclear generator British Energy is accusing rebel shareholder Polygon of misleading the firm's 230,000 private investors.

In a filing before the US courts, BE also says the fund manager misled the US Securities and Exchange Commission by registering share purchases more than six weeks late.

The company says Polygon's claims to have bought shares 'for investment' are false and that it was buying them to 'influence the control' of the business.

Polygon is trying to block a BE restructuring that will see shareholders end up with just 2.5% of the company.

But in its filing, BE warned shareholders of 'significant dangers' inherent in the fund manager's proposals.

Polygon is backed by fellow US investor Brandes. The duo hold 12.5% between them. The aim of the court filing - signed by BE company secretary Robert Armour before New York district judge Shirley Kram - is to stymie calls by the two US investors for an extraordinary general meeting.

Armour says that if they got their way, it would force BE to pay £1.5bn to its creditors, pushing it into insolvency.

Polygon said it believed its US share ownership filings were accurate and intends to fight the application. It is also the subject of a writ from bondholders.

The European Commission is today expected to approve the restructuring.

US investor Brian Stark increased his BE stake by 1.4% to 9.4%.