On this record EDF is advised by Deutsche Bank

After the acquisitions of British Energy and the nuclear assets of the American Constellation, for a total exceeding EUR 18 billion, EDF seeks to reduce its debt of at least EUR 5 billion. Two assets are listed at the top of the list of possible assignments: RTE electricity transmission network and distribution system low-voltage of EDF to the United Kingdom. The group chaired by Pierre Gadonneix is refining its programme and is up to the end of 2010 to perform these operations.

Total or partial British distribution network assignment seems like the easiest solution politically. Financially, these regulated assets are valued at about 3 billion pounds (3.5 billion). Only problem, they generate two thirds of the operational result the British subsidiary, EDF Energy, and his boss Vincent de Rivaz, is not conducive to a sale. On this record, EDF is advised by Deutsche Bank. While working on this scenario, the French electrician is seriously studying a partial sale of ten. The Manager of the network of high and very high voltage is estimated around 12 billion euros, including debt. Out of the question to assign all of the capital, the company must remain public. But EDF may sell one-third of the titles. The idea is to create a holding company which each ten and would be detained to 66 by EDF and 33 by a round table on the Caisse des Dépôts. The public bank, advised by HSBC, conducted exploratory contacts with other parties. AXA Private Equity would part. But if the CDC considers himself a "natural partner" of RTE, the investment fund should be looking on governance and ensure that they will have their word to say about the management of the company.

Arbitration policy

The schema seems quite advanced, but expected political arbitration. This is where the shoe pinches. Unions are fervently defending the principle of an integrated EDF Group, owner of its networks. They are supported by the Minister of ecology and energy, Jean-Louis Borloo, who obtained that Europe accept such a model. And in a social context already stretched at EDF, the Elysee is not necessarily ready to move in force.

For its part, the direction of RTE is not resistant to an opening of the capital, but wishes that it takes place in an industrial project, beyond the debt of its parent. It could be closer to ten other European Network Manager (links together it already at the Belgian Elia and the British National Grid) or to facilitate its entry into new technologies.

Another element into account, and not least: the price. "A good transaction should present a premium of 10 to 15 ", hopes a close source of the electrician. "Should instead expect a 10-15 haircut", said one analyst. Financial crisis, the buyers will indeed negotiate farm. As many assets are already selling in the sector. Last month, German E.ON thus announced that it could abandon or postpone its divestiture program of 10 billion euros by end 2010 if it received too low offers. And last week, Dutch Essent cancelled the sale of its subsidiary of management of waste, Essent environment, without a sufficient price. EDF, the risk is high. The debt rose from 16 to 24.5 billion euros between 2007 and 2008. Following bond since January, the debt today goes to the 30 billion. In January, Standard & Poors lowered the mark of the electrician to A , with a negative perspective. According to the Agency, "the success of programmes of sale is a notation key factor" of the European energy groups.