Short straw

2 December 2002 By Camilla Palladino

Short straw

2 December 2002 By Camilla Palladino

The French electricity giant is, in one way or another, on the hook for a full E1.2bn. But Fiat and its banks don’t get off scotfree.

This content is for Subscribers only

Context News

All of the partners in Italenergia, the vehicle that controls Edison, will contribute to the energy group's E2.1bn recapitalisation. Italenergia shareholders will provide about E1.53bn. Another E570m will be raised from the market, according to a person close to the situation.

Italenergia will convert a E1bn subordinate loan to Edison into equity. Its shareholders Fiat, Electricite de France, Intesa, Capitalia, SanPaolo and Tassara will raise another E530m in proportion to their stakes , except for Fiat, which will contribute E25m less than it should. EdF guaranteed the E1bn of borrowings that Italenergia took on to grant Edison the loan.

The three banks have secured put options from EdF on the E120m of new money relating to their original 23% stake in Italenergia. This agreement doesn't extend to the E75m they need to contribute following the extra 14% stake they bought from Fiat last summer.

Email a friend

Please complete the form below.

Required fields *