M&A

9 November, 2009

Toshiba, GE to offer over E4 bln for ArevaT&D-paper

PARIS, Nov 9 (Reuters) - Toshiba (6502.T) and General Electric (GE.N) are both ready to offer more than 4 billion euros for the power and transmission unit of France's Areva (CEPFi.PA), the La Tribune newspaper reported on Monday. State-owned nuclear reactor group Areva is selling its T&D unit in order to finance future investments and has selected Japan's Toshiba (6502.T), a consortium led by U.S.-based GE, and French partners Alstom (ALSO.PA) and Schneider Electric (SCHN.PA) as possible buyers.

"According to our informations, the offer presented by Toshiba is close to 5 billion euros. GE, which as broken its partnership with private equity fund CVC this week-end and could therefore approach Axa Private Equity (AXAF.PA), is also offering more than 4 billion euros", La Tribune wrote. Alstom and Schneider are offering 3.5 billion euros, the paper added.

"The Japanese firm wants to anchor the project in France and could list Areva T&D in five to seven years. GE is also considering a listing (of T&D) in five years", the newspaper said. At Areva there was no immediate comment on Monday.

Binding offers are due on Monday ahead of an Areva decision expected around Nov. 16. Bidders will need to reassure the French government on the social side of their project as the financial crisis boosted unemployment figures in the last months.

Areva T&D employs 31.000 workers in Europe and 5.500 in France.

(Reporting by Matthias Blamont, editing by Marcel Michelson)

Source: http://www.reuters.com