Investors dump 40m BE shares

INVESTORS continued to dump shares in British Energy as Government sources made clear it would not rule out putting it into administration. The warning, from an adviser to Trade Secretary Patricia Hewitt, left the shares 5 1/2p lower at 22 1/2p as more than 40m changed hands - seven times the normal volume.

Placing the company into administration would wipe out shareholders and severely maul holders of its £408m of bonds - now trading at 72% of face value.

One major investor, giant US investment group Fidelity, disclosed that it had unloaded 6m shares in the past few days. It still has just over 6%. BE has been driven to the edge of insolvency by weak electricity prices and technical problems. The shares were suspended last week at 80 3/4p. They returned to the market on Monday as the Government gave the company a £410m lifeline.

Meanwhile, the board is standing behind executive chairman Robin Jeffrey, despite Government pressure for him to be ousted.