#NEWS French nuclear giant Areva to postpone capital increase to 2011

2010-11-22 20:18:49

PARIS, Nov. 22 (Xinhua) -- French giant nuclear power group Areva, which seeks to boost funds via a capital increase, was likely to postpone the operation to next year, local business daily Les Echos reported on Monday.

According to its report, the capital increase seems to be delayed to spring 2011 as "the process's stagnation is partly due to conditions imposed by the Sovereign Fund of Qatar to participate in the operation."

"Qatar wants to eventually convert all or part of its shares in an investment in the mining activity of the nuclear group," it added on its web site.

Decided in June 2009, the state-run nuclear group planned to raise up to 3 billion euros (4.11 billion U.S. dollars) from a capital increase after offering 15 percent of its stake to investors. The company pledged to close the operation before the end of this year.

Among bidders for Areva's stake, the report cited Kuwait's sovereign funds and Japan's Mitsubishi Heavy Industries (MHI).

Areva officials were not immediately available to comment.

The capital increase is expected to help the company to boost its financial resources enough to realize its projects and investments. Areva registered a 6.4-percent rise in its turnover to 4.15 billion euros (5.69 billion dollars) over the first half in 2010 from the same period last year.

Its shares were in red in early trading on Monday session after falling by 3.57 percent to 332.15 euros (455.69 dollars).

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