GE sheds some load Posted On: 2009-11-09 Posted by
Reuters
GENERAL Electric is talking to sovereign funds in Singapore, Korea and Qatar about its possible bid for Areva's electrical power and transmission unit T&D, Les Echos newspaper said on Friday.
The move could reduce the interest of GE's main bid consortium partner, private equity fund CVC, and increase that of GE, the paper said.
GE could not be reached for comment.
″According to several sources, under the initial scenario for the consortium led by the American group, CVC and other investors would have had a substantial minority interest of 25-30%, possibly more,″ the paper said.
″Talks now focus on reducing to around 10-15% the holding of the co-investors,″ it said.
″Besides contacts with Qatar sovereign fund QIA, General Electric started talks with Singapore's GIC, and Korean sovereign fund KIC,″ the paper said.
State-owned nuclear reactor group Areva is selling its power transmission and distribution unit and has selected Japan's Toshiba, the consortium led by U.S.-based General Electric, and French partners Alstom-Schneider Electric as possible buyers.
Binding offers are expected for November 9 ahead of an Areva's decision for November 16.
Economy Minister Christine Lagarde has said the offers for T&D would be assessed on the basis of price, industrial strategy and employment issues.
Areva, in which the French state holds a 91% stake, is selling the T&D unit, valued at between $4.4bln (€3bln) and $7.4bln (€5bln) by analysts, as part of an $16.3bln (€11bln) plan to fund expansion that includes a capital increase.
Several analysts have told Reuters initial offers for T&D would not exceed $5.9bln (€4bln). (Reporting by Dominique Vidalon; Editing by Greg Mahlich) ″
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