AN energy supplier is in takeover talks.
Scottish and Southern Energy was reported to be in £11billion takeover talks with a state-owned Swedish power giant.
The firm, which is the UK’s second biggest power company, is understood to be holding talks with Vattenfall.
The move follows years of speculation linking the two groups, but the talks are thought to be at an early stage, and any takeover is understood to be depend on the outcome of an auction of Dutch energy firm Nuon.
Vattenfall is currently bidding for Nuon, Holland’s second biggest energy company, and the Scottish and Southern Energy talks are reported to be a fall-back position if it is unsuccessful.
Stockholm-based Vattenfall is one of the leading energy producers in northern Europe and it is has a huge cash fund for acquisitions. It is understood to have wanted to move into the UK market for some time.
A Scottish and Southern Energy spokeswoman declined to comment on the speculation. No-one from Vattenfall could be contacted.