Tip your cap

24 February 2003

This is part of a master plan by EdF to curry political favour in Rome for its march into Italy. But Enel investors must keep on their toes. This may give Enel cheap power, but it may not actually open the French market to competition.

This content is for Subscribers only

Context News

France and Italy are reportedly in talks that could lead to Enel taking a stake in four of Electricite de France's nuclear plants.

In return, the stateowned French energy group would recover full voting rights in Edison, Italy's second biggest power group. EdF has an 18% stake in Italgenergia Bis, which controls Edison, but its voting power is limited to 2%.

The Italian government has criticised EdF's foreign expansion into Italy and elsewhere, arguing it has not been accompanied by energy liberalisation at home.

According to Les Echos, Enel would invest E1.2bn to E1.8bn to take a 30% stake in a holding company that contains four stations. The French Finance Ministry has denied any talks are taking place, but Enel sources told Reuters that EdF was seeking to sell a 30% stake in a generating company to a nonFrench bidder.

Email a friend

Please complete the form below.

Required fields *