UPDATE: Edison Deal Inches Forward; EDF's Request To Consob Eyed
November 04 2011 - 9:19AM
Dow Jones News
State-controlled power utility Electricite de France SA (EDF.FR)
and Italian shareholders of Italian utility Edison SpA (EDN.MI)
agreed Friday to continue talks for EDF to take control of Edison,
pending an opinion on EDF's tender offer for the remaining stake
from Italy's stock market regulator Consob.
EDF is expected to request an opinion from Consob as soon as
next week, people familiar with the matter said, adding that the
decision could come any time before Christmas. Consob has no formal
deadline by which it must make the decision regarding the price of
EDF's minority buyout.
The November 30 deadline marks another step in EDF's drawn-out
battle to gain control over Italy's second largest utility.
Although analysts are unable to gauge if and when EDF will finally
be able to increase its stake in Edison, many are upbeat about the
prospect of a deal.
"There are a lot of synergies to be created between EDF and
Edison," said Antonella Bianchessi, an analyst at Citigroup.
"Furthermore, the simplification of the control structure will be
positive for Edison."
Bianchessi says that by gaining control over Edison, EDF will be
able to increase its exposure to gas and get direct access to
Africa's gas market as demand for nuclear power slows.
EDF said Friday that Italian utility A2A SpA (A2A.MI) and
investment vehicle Delmi have agreed to extend a shareholder pact
for Edison until Nov. 30.
In a filing with French financial regulator Autorites des
Marches Financiers, EDF said A2A, Iren and Delmi have obtained all
the required corporate authorizations to continue the negotiations
and finalize an agreement with EDF regarding the shareholding and
industrial reorganization of Edison, on the basis of the deal
outline agreed in October.
It said that EDF and Delmi each retain the right to terminate
the shareholders' agreement at any time prior to Nov. 30. Such a
notice of termination would result, starting Nov. 30, in the
procedure for the liquidation of the joint Delmi and EDF stake
through the auction of the Edison shares it holds, EDF said.
-By Jennifer Clark, Max Colchester and David Pearson, Dow Jones
Newswires; +39 02 58 21 9904; jennifer.clark@dowjones.com
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