Italy's A2A board greenlights EDF deal
The board of A2A, a key Italian shareholder in Edison, said on Tuesday it had approved an outline deal for French electricity giant EDF to take control of the remaining 50 percent of Edison, Italy's second-biggest power company.
"A2A's management board unanimously approves negotiation guidelines for Edison/ Edipower transaction," the company said in a statement, adding that the transaction still needs approval from the supervisory board.
A2A and Iren are Edison's main Italian shareholders and the deal would result in the two owning the Mese and Udine hydroelectric plants, while Edison would retain Edipower's thermal power plants and the Tusciano run of river plant.
A2A also said a put option would be granted by EDF to Delmi -- a shareholders' group within Edison -- on 100% of Delmi's stake in Edison and that Delmi would have a call option on 250 MW of Edison's wind farm capacity.
The chairman of Edison will continue to be Italian, the statement said.
Edison has a complex shareholder structure. It is 61.3 percent controlled by Transalpina di Energia, which is itself controlled 50-50 by EDF and Delmi. EDF also directly owns 19.3 percent of Edison's shares.
© 2011 AFP