British Energy poised for comeback

THE value of embattled nuclear generator British Energy could soar to £1.8bn when it rejoins the London Stock Exchange on Monday. When it delisted in October, the nuclear giant was worth just £90m.

Shares in the restructured firm were pre-trading yesterday in the 315p-320p range. A share price of 315p would result in a £1.8bn value, said UBS analyst Andrew Wright.

The restructuring - subject to court approval today - may bring some relief to the firm's 230,000 small shareholders. BE's £1bn debt-for-equity swap left investors with just 2.5% of the shares.

British Energy's relisting prospectus revealed that creditors including Deutsche Bank and secretive US hedge fund manager Brian Stark would hold more than 3% of the new shares.

Seven BE bosses could share in a bonus bonanza of at least £25m in three years' time. Chief nuclear officer Roy Anderson is set to top the payouts with a possible £9.89m.

BE acknowledged the indicative market value but warned that early trading could be volatile.