The French presidency is still considering a tie-up between French engineering firm Alstom SA (1022047.FR) and French nuclear group Areva (CEI.FR), with Bouygues SA (12050.FR) to obtain a sizable stake in the new entity, Le Canard Enchaine reported Wednesday.
According to the French weekly newspaper, construction group Bouygues, which already owns 30.07% of Alstom, would own 35% of the new company while the French state would own 18%.
To facilitate the merger, both Alstom and Areva would be valued at EUR20 billion each, the newspaper said.
To encourage Germany to sell Siemens' 35% stake in Areva unit Areva NP - also paving the way for the merger - the French presidency is to urge telecommunication equipment maker Alcatel-Lucent (ALU) to sell its stake in French defense and electronics company Thales SA (12132.FR) to part German-owned European Aeronautic Defence & Space Co. (5730.FR), the newspaper said. The French state owns around 90% of Areva.
Neither Areva nor Bouygues were immediately available to comment, while Alstom said that "the company has already outlined the benefit of a merger for both parties but that the decision and the timing belong to the State." Alcatel-Lucent declined to comment.