European utilities may be on some investors minds, as the biggest power producer in Europe gets ready to offer a takeover, lighting up related exchange traded funds (ETFs). Electricite de France S.A., the biggest power producer in Europe, is offering British Energy Group Plc a contract that will be 5% below the company’s share price, report Paul Dobson and Ambereen Choudhury for Bloomberg.

The proposal is expected any day now, but it’s confidential. Many power producers want to buy British Energy because Prime Minister Gordon Brown backs nuclear reactors to meet energy demand and replace the aging units. The U.K. government would sell its stake in the deal.

iShares S&P Global Utilities (JXI) holds 1.9% in Electricite de France, Iberdrola is 5.9%, with E.ON AG at 10.9%, the largest holding. The fund is allocated throughout Europe, with the United Kingdom containing 10.7% and France at 10.8%.

Tags: Energy, Europe, EWQ, EWU, France, United Kingdom, Utilities