British Energy's shares slumped by 2.2 % yesterday after the investment banks placing 400 million shares in the nuclear generator said they had received orders for the majority of the shares offered.
The government placing in the UK's biggest electrical power producer is worth about £2.1bn at last night's closing price of 525.25p per share.
Sources close to the joint bookrunners for the share sale, Citigroup, Deutsche Bank, and Merrill Lynch, said they expected the placing to be fully subscribed and did not expect to see the shares priced at less than 520p.
British Energy said the planned conversion and sale of the shares will result in a 43.1p reduction in basic earnings per share for the pro forma financial year 2006/07.
The company added that although there will be no change to anticipated dividend dates, the amount available for distribution to shareholders in respect of the financial years ended March 31, 2006 and 2007 will drop from around 38p per share to approximately 35p per share.
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