INTERVIEW: EDF CFO: No Provisions After Constellation Deal
October 27 2010 - 3:45AM
Dow Jones News
The agreement between French state-controlled power behemoth
Electricite de France SA (EDF.FR) and U.S.-based energy group
Constellation Energy Group (CEG) restructuring their nuclear
partnership won't lead to any potential additional provisions
beyond the $250 million announced, EDF's Chief Financial Officer
Thomas Piquemal said Wednesday in an interview with Dow Jones
Newswires.
"This agreement doesn't lead to any further provisioning,"
Piquemal said.
Early Wednesday, EDF and Constellation said they agreed to end a
joint venture to develop nuclear power plants after the
relationship soured in recent months.
Under the terms of the agreement, EDF will acquire
Constellation's 50% ownership of UniStar for $140 million. Upon
completion of the transaction, EDF will be the sole owner of
UniStar.
Also, EDF will transfer to Constellation 3.5 million of the
shares worth about $110 million and will relinquish its seat on the
Constellation board. Constellation will terminate its rights under
an existing put option under which EDF would have been required to
buy 12 power plants--most of them coal-fired--from Constellation
for as much as $2 billion.
Asked if EDF intended to pursue the development of nuclear
plants alone in the U.S., EDF CFO said the group was "determined to
keep studying" nuclear development prospects in the U.S., and
wouldn't elaborate further.
Web site: www.edf.com
- By Geraldine Amiel, Dow Jones Newswires; +33 1 40171767;
geraldine.amiel@dowjones.com;
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