Nuclear operator British Energy has agreed to be taken over by French utility Electricite de France for around 775 pence per share, a source briefed on the matter said on Friday.
EDF is looking to agree a deal with Centrica to take a minority stake in the company, although the terms have yet to be decided, the source added, saying it hoped to finalise a deal with British Energy and Centrica by Wednesday.
The companies were not immediately available for comment.
British Energy, 35 percent owned by the government, has attracted takeover interest since Britain gave the green light to new nuclear power stations in January. The company owns eight power stations, all of which have surrounding land suitable for new building.
The 775 pence price would value British Energy at 12.4 billion pounds. Its shares closed up 6.2 percent at 729 pence on Thursday, valuing the company at 11.7 billion pounds - well above a previous EDF offer rejected by British Energy.
Valuing the company has proven difficult due to the impact of a surge in power prices, although a recent correction may have made an agreement between the parties more likely.
British Energy confirmed on Thursday it was in "advanced discussions with one party" but said there was no certainty the discussions would lead to an offer being made.
