EnergySolutions may purchase USEC Inc.

USEC Inc., the uranium-enrichment company formerly owned by the U.S. government, may be bought by Salt Lake-based EnergySolutions Inc. if the companies win a joint bid for a $9.5 billion contract, two congressmen said.

Representatives John Dingell and Bart Stupak, both Michigan Democrats, wrote in a letter to Energy Secretary Samuel Bodman that they "have been advised" that if EnergySolutions were awarded the sole-source contract, it would then make a tender offer for USEC's stock.

The congressmen don't say who told them about the possible tender offer.

Elizabeth Stuckle, spokeswoman for USEC, based in Bethesda, Md., said the company has not entered into negotiations or signed any agreement with EnergySolutions related to a purchase or tender offer.

"As far as we're concerned, any discussion about EnergySolutions buying us is rumor, purely rumor," she said in a phone interview, and declined further comment on the matter.

Shares of USEC rose 5.9 percent to $17.80 in after-hours stock market trading.

The contract in question is for the decommissioning and decontamination of plants in Kentucky and Ohio. Dingell, the chairman of the Energy and Commerce Committee, and Stupak wrote that it would be "deeply troubling" if EnergySolutions and USEC were awarded a contract to do the work on a non-competitive basis.

"It would be an indirect subsidy to fund a takeover of USEC and the financing of the centrifuges plant," they said.

Stuckle said there was no truth to the assertion in the letter that EnergySolutions would take over decommissioning work at the Kentucky or Ohio facilities.

USEC on Wednesday reported a second-quarter net loss of $13.4 million, or 15 cents a share, compared with a profit of $21.6 million, or 25 cents, for the same period last year.

The company blamed the results on higher power costs and an increase in the price of uranium from Russia. Under a contract with the U.S. government, USEC buys low-enriched uranium from Russia under the "Megatons to Megawatts" program to convert nuclear weapons material to fuel.

EnergySolutions is a closely held company that specializes in high-level nuclear waste management, spent nuclear-fuel handling and transportation. The company did not return a call seeking comment.