Italian Edison Holders To Make New Split-Up Offer To EDF

Italian shareholders in utility Edison SpA (EDN.MI) will make a new offer to Electricite de France SA (EDF.FR) to split up Edison at a board meeting Wednesday, two Edison shareholders said Wednesday.

The proposed agreement would swap investment vehicle Delmi's 30% stake in Edison, Italy's second-largest utility, in exchange for Edipower, a company that owns nine power plants with a 6,000-megawatt generating capacity.

The new offer has the support of the Italian government, said Bruno Tabacci, a superintendent on Milan's city council, which owns a stake in A2A SpA (A2A.MI), one of Edison's Italian shareholders.

Italy's government sees the fate of Edison as strategic and is likely to be involved in any future discussions on Edison with EDF, said Tabacci, who Wednesday attended a meeting with Italian Industry Minister Corrado Passera concerning the deal.

A non-binding agreement between EDF and Italian shareholders reached in October to split up the company is no longer valid, Tabacci said. The parties have until Dec. 31 to reach an agreement.

"This is the last offer, it's definitive--take it or leave it," said Graziano Tarantini, head of A2A's supervisory board.

Edison is 61.3% held by Italian company Transalpina di Energia, which is 50% held by EDF with the rest owned by Delmi. EDF also has a direct stake of 19.3% in Edison. Delmi is held by Italian utility A2A.

Through its direct and indirect stakes, EDF controls 50% of Edison, and reached a non-binding agreement with Italian shareholders in October to gain full control.

Edison is holding a board meeting to discuss financing requirements. EDF is pushing for the company to call for a capital increase, Italian papers reported Wednesday.

-By Oscar Bodini, MF Dow Jones, and Jennifer Clark, Dow Jones Newswires; 39 02 58 21 9904, jennifer.clark@dowjones.com

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