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Friday May 13, 08:31
Edison to be bought by EDF, Aem
(by Olivia Cohen)

Italian energy company Edison SpA agreed to be bought by the world’s largest power company Electricite de France SA and Italian utility Aem SpA for 7.28 billion euros ($9.2 billion).

The two companies will purchase a 62% stake in Edison for 4.08 billion euros in a deal that will allow the companies to have equal stakes in Edison.

In 2001, French power giant made an attempt to bid for the company, but its endeavour bore fruit only this year. EDF said that the deal tops its expectations.

Electricite de France and Aem said that after purchasing 62% of Edison they will try to bid 1.86 euros a share for Edison’s traded stock, which is about 10% higher than the May 6 price, for a total of as much as 3.2 billion euros.

Last week, the Italian and French governments agreed to wind up a four-year dispute over competition in their power markets.

Under the terms, EDF will appoint Edison’s chief executive and chief operating officer, and Aem will appoint the company’s chairman. The purchase will be made through a buyout vehicle.
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