 Europe's biggest coal-fired power station |
Coal giant BHP Billiton will this week mount a rival bid to buy Europe's biggest coal-fired power plant, the Drax plant in North Yorkshire, several newspaper reports say. Energy firm International Power and investment bank Goldman Sachs have already laid their respective bids on the table.
The Drax power station, which produces 10% of the UK's electricity needs, has been on the verge of bankruptcy for months.
American utility AES bought Drax in 1999 for �1.87bn ($2.98bn) but walked away earlier this month after failing to agree a plan to restructure its debts.
UK power providers have struggled to cope with a collapse in wholesale electricity prices, and Drax faced additional difficulties when its largest customer, TXU Europe, went into administration.
Debt-laden
The plant has estimated debts of �1.3bn, and is currently being managed by its creditors.
Both the Sunday Telegraph and the Sunday Times say BHP Billiton will lay a bid on the table this week.
Owning stakes in power stations has not been part of the coal giant's previous strategy.
But the deal could make financial sense since Drax, which buys an estimated �250m of coal a year, would be a certain outlet for BHP's coal.
The large German utilities RWE and EON have also been touted as potential buyers.
One-Minute World News 
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