British Energy, which provides almost one fifth of Britain's electricity, denied on Friday that it had reached a takeover agreement with French energy giant EDF.
"Advanced discussions with a party have continued but without agreement to date," said the nuclear power operator in a brief statement.
The executive board of EDF (Electricite de France), Europe's top electricity producer, approved a purchase bid for British Energy on Thursday, according to French media reports.
EDF plans to purchase a 35.2 percent stake of the company partially held by the British government at a price of 5.45 billion euros (8.05 billion U.S. dollars).
In May, British authorities had refused purchase proposals from EDF, saying it had undervalued the company.
EDF, an international heavyweight in civil nuclear power production, earned profit of 5.62 billion euros (8.3 billion U.S. dollars) in 2007.