Oct. 4--French energy giant EDF is looking for investors to pay up to £3.2 billion for a 20 per cent stake in its new business building four nuclear reactors in the UK.

It has already agreed a partnership that would give Centrica, the owner of British Gas, a 20 per cent stake in the joint venture.

It is understood that Pierre Gadonneix, chief executive of EDF, wants it to retain a 51 per cent stake, but would like other nuclear companies to take stakes.

EDF recently bought British Energy, owner of the UK's existing eight nuclear power stations, for £12.5 billion, and is also looking for investors in British Energy to reduce its overall debt of £22.5 billion. Centrica also has a 20 per cent stake in British Energy.

The search for more investors in the nuclear sector comes as EDF announced it was looking for offers for its electrical distribution network in London, the South-East and eastern England. Its 100,000 miles of cables across the area supply eight million homes. EDF is believed to be looking for bids of about £4 billion for the business, which employs 5,000 people.

Potential buyers are thought to include the Abu Dhabi Investment Authority, three Canadian pension funds and a group owned by Hong Kong entrepreneur Li Ka-shing, Asia's richest man.

NICK HORLER, chief executive of ScottishPower, has told the Government that it risks falling behind in the race to become a world leader in green power station technology. The warning from one of the three companies competing to build an environmentally friendly coal-fired station underlines power industry fears that Government dithering is putting at risk the UK's chances of being first to exploit carbon-capture technology.

Last Sunday, Financial Mail revealed that the winner would not be announced until 2011 -- three years late.

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