Electricite de France SA and the French government are at odds over a financial deal that would allow the state-owned utility to give the final go-ahead next month to a 18 billion-pound ($25.5 billion) nuclear plant in the U.K. The government, which owns 85 percent of EDF, is resisting the company’s demand for a share sale to raise capital, arguing it has no immediate liquidity issues, said three people, who asked not to be named because the discussion isn’t public. For its part, the government is ready to take EDF’s dividend in shares rather than cash this year and next, two of the people said. The company, which wants to limit any credit rating downgrade to two levels, is also seeking additional savings and preparing asset sales, one of them said. These costs cuts may reach 1 billion euros ($1.1 billion) by 2018 and would be on top of 750 million euros already announced, French newspaper Le Figaro reported on Friday, without saying where it got the information. EDF may hold a board meeting around April 22 to look into its financial plan, assuming that it’s reached an agreement with the French government, two of the people said. It would hold another board meeting at the end of the month or early May to vote on the final investment decision for Hinkley Point, the people added.
Bloomberg 15th April 2016 read more »