EDF looking to complete business negotiations with Alpiq
Alpiq has given EDF exclusivity in negotiations until January 15th 2012.
Business negotiations are continuing on a deal that will see energy company EDF take over Alpiq's 20 per cent stake in Edipower.
A preliminary agreement has been settled on and now talks will take place to try and secure a final price, which is expected to be anywhere between €150 million (£130 million) and €200 million.
Numerous negotiation strategies could be used by both parties as they seek to get the best deal for their respective groups.
Under the terms of the arrangement, Alpiq has given EDF until January 15th 2012 to finalise the details of any acquisition, after which it will listen to other interested parties.
At present, EDF owns a 25 per cent stake in Edipower and so any deal would see this rise to 45 per cent.
Negotiations are now at a crucial stage for EDF - which is the largest producer of low-carbon electricity in the UK.
Posted by David Gleck
Source: Reuters, Dow Jones, Financial Times, October 25th