25 November, 2009
Areva T&D execs oppose sale to French bidders
* Execs state case in open letter in Les Echos
* Ask if sale to foreign bidder would disadvantage France
* Suggest creation of world-leader around Schneider
* Three bids on the table of some 4 billion euros
PARIS, Nov 25 (Reuters) - Top executives at Areva T&D argued against a possible break up of their power transmission and distribution company if the state-owned parent sells out to two French bidders.
In an open letter published in financial newspaper Les Echos on Wednesday, the 10 executives said if their business was sold to a consortium of Alstom SA (ALSO.PA) and Schneider Electric SA (SCHN.PA), it would mainly benefit main rivals ABB AG (ABBN.VX) and Siemens AG (SIEGn.DE) on a booming global market.
The members of the executive board asked in their letter whether it would be to the disadvantage of France if Areva SA (CEPFi.PA) accepted a foreign bid that would keep the company together and maintain its position in the world's top three.
Japan's Toshiba Corp (6502.T) and General Electric Co (GE.N) of the United States have also made bids for Areva T&D.
The sale of the power transmission and distribution unit is a key part of an 11 billion euro ($16.4 billion) financing plan to boost Areva's global expansion as more countries launch or consider nuclear power projects.
The three filed their bids on Monday. Against expectations, the French state and Areva did not make a short list, but kept all three in the race. [ID:nGEE5AN1VY]
Areva T&D employs 31,000 people, 5,500 of them in France.
The sale has turned into a political hot potato as the French consortium -- seen as the government's favourite for the deal provided its financial conditions match those of rivals -- made the lowest bid and has said it will split Areva T&D in two.
The other bidders would keep it together and merge it with their activities in this sector.
T&D activities are key for the power industry with high-tech products such as so-called smart grids that are better able to balance the needs of customers and deal with technical incidents as well as potentially cutting CO2 emissions.
The group of 10 top managers also held out a solution involving Alstom and Schneider keeping Areva T&D as a whole and creating a world leader in electrical systems around Schneider.
Heads of Alstom and Schneider published a letter in Les Echos on Tuesday to plug their bid. (Editing by David Holmes) ((For a related analysis please double click on [ID:nLK630671])) ((marcel.michelson@thomsonreuters.com; +33 1 4949 5130; Reuters Messaging: marcel.michelson.reuters.com@reuters.net))
Source: http://www.reuters.com
Areva T&D execs oppose sale to French bidders Added: (25.11.2009)
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