The UK’s International Power and GDF-Suez of France have revived talks about teaming up to establish a global electricity group.

The firms were previously in negotiations but talks collapsed in January 2010 after failing to agree on terms.

International Power and GDF-Suez are exploring the possibility that International Power could pay a special dividend to its investors as part of a deal to merge with the international assets of GDF-Suez.

While the cash element is likely to remain a minority part of a final offer, last time GDF-Suez refused to offer the cash demanded by International Power’s biggest investors.