ALL bids for a power station near Selby have been shelved, but workers still stand to share in a massive £100 million cash bonanza.

Employees at Drax Power Station will make at least £20,000 each when the company lists on the stock market next month.

Many of the firm's 580 full time workers will get considerably more, with chairman Gordon Horsfield and former chief executive Gerald Wingrove each in line for £25 million.

The average pay-out will be £172,413 and although the larger sums going to senior employees will reduce that figure for most employees, staff can still expect their cut to run into tens of thousands of pounds.

The windfall will be in the form of shares, which staff can either keep or sell.

Senior management will sign an agreement not to sell their shares until after a period of six or 12 months.

The plant's workforce are entitled to the bonus because they have secured a share in the company's equity value. Those who have worked at the power station for less than three years will be entitled to a smaller share than longer-serving members of staff.

Drax will float on December 15, after it emerged today that negotiations with the one remaining bidder for the plant had ended unsuccessfully.

In a joint statement, Drax and BCHP said a "significant majority" of the firm's shareholders preferred to float rather than sell to the American consortium.

A spokesman for Drax said shareholders were not impressed by the size of the offer from BCHP, and had concerns over the certainty of the bid.

Had the company been sold, Drax employees would have received the windfall in cash, rather than shares.

The firm's press officer, David Trenchard, said: "There would have been a windfall either way. People will immediately own their shares so people's bank balances will include shares in Drax Power.

"Whether they choose to sell is up to each individual."

After having an initial bid of £1.9bn for the plant rejected, BCHP made a second offer, believed to be closer to Drax's £2.25 billion valuation. But negotiatiors failed to reach a deal.

The statement said: "It is clear from those discussions, and soundings taken of Drax's shareholders by the company and advisers to the shareholder committee, that a significant majority preferred to remain committed to the irrevocable undertakings previously given.

"The company is continuing preparations for the refinancing and listing of Drax."

Earlier this month, a rival bid by International Power and Japanese firm Mitsui was withdrawn and Drax rejected an approach by a separate consortium made up of Apollo Management, Texas Pacific Group and TowerBrook.

Today's news marks a remarkable turnaround for Drax Power. Just two years ago the firm was on the brink of liquidation, following the collapse of US power giant TXU.

Updated: 09:47 Thursday, November 24, 2005