French Part-Privatizing EDF
The French government yesterday took a huge financial and political gamble by launching the part-privatisation of state-owned EDF, Europe’s second-largest power group, in the face of investor uncertainty and union fury.
Ministers ran into immediate resistance from investors when they set a price range of €29.5 to €34.1 per share – higher than the €29 expected – for selling off 15% of EDF in a move designed to raise €7bn for the group’s expansion programme in Europe.
The sale is the world’s biggest initial public offering for more than four years, since Kraft Foods‘ market debut in the US in 2001, and values EDF at between €55bn and €63.5bn, enabling it to overtake Germany’s Eon as Europe’s biggest utility.
Source: Guardian Online.
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