The Register: The British government plan to build a new generation of nuclear power stations is on hold, after French energy giant EDF's bid to buy the UK's existing nuclear industry was rejected at the last moment. Reports have it that the deal fell through after existing shareholders in British Energy - thought to be large UK pension funds - demanded more than EDF was willing to pay.

The £12 billion acquisition had been seen for some time as a done deal, with the full approval of the government. EDF, which is a major player in the mostly-nuclear French electricity market, was to take over British Energy not so much for its existing plants or expertise, but in order to acquire its nuclear sites. This would avoid much of the red tape, protests and legal disputes that would result from breaking of new ground, and EDF with its French experience would have little difficulty in doing the building.

Now, however, the deal - a vital precursor to the entire plan - appears to have foundered.