SHARES in British Energy soared by a third yesterday after reports a US hedge fund could mount a legal challenge to the nuclear power generator’s restructuring in an attempt to get a better deal forshareholders.
The stock climbed by almost 30% to close at 10.25p – a 2.25p gain – and has doubled in value since Friday.
British Energy, which is dependent on a government loan for its survival, said in a statement it did not know why the shares had risen.
Newspaper reports suggested Appaloosa, a New Jersey-based hedge fund which had taken a 4.6% stake in the business, had retained Bingham McCutchen, a US law firm with restructuring expertise in the UK, to see if there were ways to challenge the deal.
