Energy sector bankers are looking forward to another fee windfall as utility companies around Europe prepare bids for nuclear power company British Energy, in which the UK Government is looking to sell its stake.

Lehman Brothers has become the latest investment bank to emerge behind a potential buyer, according to sources familiar with the situation, after winning a role advising German utility E.On on a possible bid for the Government’s 35.2% stake in British Energy. The sale is expected to fetch about £3bn (€3.7bn)