The three bidders for French state-controlled nuclear group Areva's (CEI.FR) transmission and distribution unit Areva T&D are Monday to present their respective offers to the privatization commission advising the French government on the deal, people familiar with the matter told Dow Jones Newswires.
The three bidders for French state-controlled nuclear group Areva's (CEI.FR) transmission and distribution unit Areva T&D are Monday to present their respective offers to the privatization commission advising the French government on the deal, people familiar with the matter told Dow Jones Newswires.

"The auditions of the bidders...are indeed going to take place today, at 1000 (0900GMT), 1100 (1000GMT) and 1600 (1500GMT), one person with knowledge of the process told Dow Jones Newswires Monday.

The hearings come amidst press reports that the commission has requested all-French consortium of engineering company Alstom SA (ALO.FR) and electric equipment group Schneider Electric SA (SU.FR), and Japan's Toshiba Corp (6502.TO) to amend their respective bids for Areva T&D.

According to La Tribune, citing unspecified sources, the commission has asked the French consortium to drop its price adjustment clause. It also asked Toshiba to clarifythe funding plans for the potential new entity if Toshiba merges its transmission and distribution assets to Areva T&D.

A person familiar with the matter told Dow Jones Newswires that the commission hadn't made requests to either Alstom-Schneider or Toshiba to make amendments, but would indeed question the two bidders on those points.

Spokesmen for Alstom, Schneider and Toshiba declined to comment.

Toshiba Corp, U.S.-based conglomerate General Electric Co.(GE), and the Alstom-Schneider pairing have all made offers for the Areva unit.

Areva is being forced by the French state--which directly and indirectly controls 93% of Areva--to sell T&D in order to contribute to the company's estimated EUR11 billion investment plan.

The privatization commission's ruling on a price for Areva T&D is binding, and forbids the government to sell below the price at which it values the asset. By law, the commission is also required to make recommendations on a preferred buyer in the sale of any French government asset that isn't carried out in the financial markets.

People close to the situation told Dow Jones Newswires two weeks ago that Toshiba has offered EUR4.2 billion for Areva's T&D assets, while General Electric is willing to pay EUR4 billion.

The Alstom-Schneider consortium has also offered around EUR4 billion, but this includes a variable component of EUR400 million that could result in a lower bid price, would Areva T&D performance in the first half next year be weaker than expected, according to several people close to the talks.

The decision regarding the choice of a preferred, or even several preferred, bidders was initially expected on Monday, Nov.16. But the process has been extended, people familiar with the situation told Dow Jones Newswires two weeks ago, and a decision is unlikely until later this month.

According to French law, the bids expire on Dec.9, a month after they were officially submitted.

Since they've been submitted, discussions between bidders and government officials have been ongoing, the people familiar with the matter stressed Monday.

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