The battle for British Energy, the UK's main nuclear generator, has sprung back to life after the company said it was considering three offers, two of which have been priced higher than the company's closing share price on Thursday of 680p a share.

Shares in British Energy climbed 5.5 per cent to 717.5p as the market absorbed the news that three proposals had been received from parties wishing to make a full offer for the company.

It is understood that the three proposals have been received in the last week. EDF is thought to be one of the parties that has bid higher than 680p. The third proposal is yet to have a price put on it.

British Energy has said that it will continue talks with all of the interested parties. "The board wishes to stress that each of the proposals requires further development and that the process is therefore likely to continue for a number of weeks," the company said in a statement.

It also cautioned that there could be no certainty that any of the proposals would lead to an offer being made for the company.

The Government, which owns a 35.2 per cent stake in British Energy, has been holding an acution for its stake which is valuable to other energy companies since British Energy owns sites that would be pivotal to any new nuclear programme.

However, Energy shares had fallen 13 per cent from a 785p all-time high on April 25 as hopes of a bidding war faded.

A handful of overseas energy giants - Suez, of France, RWE, of Germany and Iberdrola, of Spain - are still thought to be interested in the British Energy assets and are the likely suspects for the mystery bidders.

Centrica, the owner of British Gas, is understood to have made a historic indicative bid of 700p a share but it is now understood to be negotiating with EDF over a joint venture to acquire British Energy, in which it would have a 25 per cent holding.

The Government is keen to have the ownership issue resolved by the time that Parliament rises in July because it wants to use the sale of its stake as an opportunity to kick-start the new build programme.

There are concerns that a drawn-out auction could delay the detailed planning and construction phases that will be necessary.

The Government is insisting that any buyer of British Energy would have to sell off some key sites to ensure proper competition in the process.

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