Toshiba bid for Areva unit

Toshiba Corp plans to bid for French nuclear group Areva's power distribution and transmission equipment unit, four sources with direct knowledge of the situation said, in a deal that could cost it more than US$ 5 billion,

The sources said Toshiba planned to participate in the bidding on Sept 18.Toshiba, which runs a far-flung electronics conglomerate, is banking on power generation for growth as it reins in investment in its recession-hit computer chip business

But the health of Toshiba's balance sheet is uncertain following a $5 billion capital hike in May, and its presence as the first foreign suitor for the up-for-sale business might sit uneasily with French government efforts to promote national industrial champions.

Areva has put its transmission and distribution (T&D) business on the block and is seeking to sell 15 percent of the group's capital to fuel its nuclear expansion plans. The government will play a major role in both decision for the 91-percent state-owned firm, already a global leader in nuclear technology.
Toshiba's shares fell 2.3 percent after news that it might bid broke.
- Reuters..


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What is Areva??

AREVA (Euronext: CEI) is a French public multinational industrial conglomerate that is mainly known for nuclear power; it also has interests in other energy projects. It was created on 3 September 2001, by the merger of Framatome and Cogema (now AREVA NC). Its main shareholder is the French-owned company CEA, but the German company Siemens also retains 34% of the shares of AREVA's subsidiary, AREVA NP, in charge of building the EPR Reactor, an advanced Generation III+ nuclear reactor.[1]

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