Nuclear sale offers 30% to private investors

Private investors will be given the chance to buy at least 30 per cent of British Energy, the modern part of the UK nuclear industry, when it is privatised in July. BZW, the stockbroker advising the Government on the sale, said small investors would be offered a discount on the price offered to City institutions.

But yesterday's announcement did not disclose how much of the company would be sold off, or how much the Government expected to raise from the controversial sale. Estimates of the company's market value have fallen to about pounds 1.5bn from early valuations of pounds 2.6bn.

More than 10,000 high street outlets, belonging to about 112 banks, building societies, stockbrokers and other financial institutions which have been appointed as Share Shops, opened for registrations yesterday. The flotation is similar to the privatisation of Railtrack, which was floated last week on the stock market with a pounds 1.9bn price tag.

Investors who registered in advance will receive special "incentives", details of which will be disclosed next week. Utilities analyst Nigel Hawkins, of the Japanese bank Yamaichi, said he believed investors would be offered an early dividend based on the company's last year in state ownership.

British Energy will run the eight most modern advanced gas-cooled and pressurised water reactors. The eight old Magnox reactors, nearing the end of their lives, will remain in state ownership as Magnox Electric.