By Francesca Landini and Elvira Pollina MILAN, Feb 27 (Reuters) - France's EDF is moving ahead with a possible listing or sale of a stake in Italian unit Edison, three sources with knowledge of the
EDF Advances with Edison Stake Sale Amid Italian Energy Changes
By Francesca Landini and Elvira Pollina
MILAN, Feb 27 (Reuters) - France's EDF is moving ahead with a possible listing or sale of a stake in Italian unit Edison, three sources with knowledge of the matter said, despite the regulatory uncertainty brought about by Italy's new energy-sector decree.
EDF's Strategic Moves in Italy
In a meeting in Paris with its advisers earlier this week, the French nuclear group dispelled doubts that an Italian decree aimed at cutting energy bills could force EDF to shelve its plans, the sources, who could not be named because discussions are not public, told Reuters.
The clarification followed comments by Edison CEO Nicola Monti that the decree could jeopardise EDF's plans for the unit.
"Unfortunately… depending on how the decree comes out, this could also change the outlook for our business plan and even for the possible opening of the capital to third parties," Monti had said on February 18.
Impact of Italian Energy Decree
A few hours later, the government announced details of its so-called 'decreto bollette'.
Sources had told Reuters last year that EDF's unit could be valued up to 10 billion euros ($12 billion).
Initial estimates point to a potentially negative impact on investment and growth prospects, particularly in Italy's renewables sector, an EDF spokesperson said on Friday.
Investment and Growth Concerns
"Edison's teams are analysing the possible consequences. EDF is also assessing, together with its advisers, the impact of these various elements on the ongoing strategic review concerning a potential minority transaction involving the share capital of its subsidiary," the spokesperson added.
The decree includes the reimbursement of carbon dioxide costs to gas-fired power plants, a measure that has cut expectations on wholesale power though it still requires approval by the European Commission.
It also cuts subsidies on certain renewables projects and raises a corporate tax.
Uncertainty over the final regulatory framework will persist until Brussels reviews the decree and the government converts it into law.
EDF has been working with Intesa Sanpaolo and Lazard since October to prepare the sale of a minority stake in Edison.
($1 = 0.8474 euros)
(Additional reporting Forrest Crellin in Paris; Editing by Nivedita Bhattacharjee)
