An EDF (1024251.FR) acquisition of British Energy (BGY.LN) would bode well for Areva (CEI.FR) as the new owner will play a vital role in the new-build nuclear programme, notes Dexia.
Thinks that at a capital cost estimated by the British government of GBP2.8B per reactor, and the nuclear island representing around half of the investment cost of a nuclear installation, Areva could target between EUR7-10B for the construction only.
Reiterates Areva Add rating and EUR840 target price. Areva shares -0.77% to EUR800.69. (LAF)