EDF: Oddo confirms buy rating
(CercleFinance.com) - The French government has ratified the project for EDF's restructuring according to an article in the newspaper La Libération.
The “Hercule” reorganisation plan, as described by the newspaper specifies that EDF "Bleue" (nuclear) would be 100%-public, while its competitive businesses (renewable energies and distribution supply) would be part of a "Green" company, of which a third of the capital would be floated. Finally, the company "Azur", for hydroelectricity, would be a subsidiary of "Bleue," Oddo says.
The details of the negotiations suggest a path of agreement between the General Directorate of Competition (DGComp) and the representatives of the French delegation on the future of EDF and the Hercule project, analysts add.
The consultation phase is coming to an end and the last steps for the implementation of the reform seem to be taking place, the analyst says.
Oddo confirms its buy rating on the stock, along with its target price of 14 euros.
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