Hedge fund threatens British Energy deal

Polygon wants better terms for BE’s shareholders in the firm’s restructuring and has found support from other institutional investors. But their support does not add up. David Watts reports

On July 23, the UK’s nuclear energy provider British Energy announced that Polygon, a hedge fund, had acquired a 5.6% stake in the firm. Two days later, in the financial pages of the Sunday broadsheets a flurry of stories appeared on how Polygon was poised to challenge British Energy’s debt-for-equity swap which had been finalised with creditors last October. Polygon was suggesting that a new deal be negotiated whereby shareholders receive 30% of the company rather than 2.5% and bondholders