CGE power has made an offer to the Board of Drax Holdings for the UK's biggest power station, located in Yorkshire.
The proposal suggests Drax Holdings exchange all its assets, except for the benefits associated with Drax's claims in the TXU administrations, for a mix of undefined senior debt and mezzanine debt instruments in CGE Power.
Drax insists the proposal is highly conditional because the completion of any final offer is dependent on CGE's purchase of a number of other plants of an appropriate mix. CGE wants to acquire around a dozen power stations, providing some 15% of the UK's electricity capacity.
The 4,000MW Yorkshire plant is the biggest coal-fired power station in Europe.