By Noemie Bisserbe and Geraldine Amiel
PARIS--Two consortia led by French power group Electricite de
France SA (EDF.FR) and state-owned financial institution Caisse des
Depots are the remaining bidders for Total SA's (TOT) gas storage
unit TIGF, according to people with direct knowledge of the
matter.
TIGF was put up for sale by the oil and gas company last autumn
as part of a wider strategy to sell as much as 20 billion euros
($26.74 billion) worth of assets by 2015 to help boost its
cash-flow, and finance substantial investments. TIGF is valued at
between EUR2.5 billion and EUR3 billion, according to analyst
estimates.
Initially, seven companies or consortia had expressed interest
in TIGF, Total said. Only two bidders are now lined up, five people
familiar with the matter said. The first consortium led by EDF also
includes the Government of Singapore Investment Corp., and Italian
energy company Snam SpA (SRG.MI), the people said.
CDC Infrastructure, a fully owned subsidiary of CDC, leads a
second consortium that comprises AXA Private Equity, Credit
Agricole SA's (ACA.FR) insurance unit Predica, Abu Dhabi Investment
Authority and Belgium's natural gas operator Fluxys Belgium SA
(FLUX.BT).
Spanish energy company Enagas is no longer in the running, the
people familiar with the matter said. A spokeswoman for Enagas said
the company was evaluating whether to pursue the bid and would
announce its decision next Monday after the company's board
meeting.
The companies will submit their final bids by Feb. 4, two of the
people said.
TIGF, or Transports Infrastructures Gaz France, is viewed as a
stable investment with activities that are regulated, granting
steady returns. It specializes in gas transport and storage, a
business seen as crucial as France is seeking to gradually lower
the share of nuclear energy and promote renewable sources and
gas-fired plants.
Total has requested potential buyers to protect jobs and working
conditions and maintain TIGF's headquarters in the southwestern
town of Pau. TIGF employs 500 people and generates EUR353 million a
year in revenue.
EDF, which owns a 20% interest in the consortium, would set
aside its share of the assets in a special account as required by
law, to finance the dismantling of nuclear reactors, one of these
people said.
Spokesmen for CDC and Fluxys declined to comment. A spokeswoman
for EDF declined to comment. A spokesman for Total also declined to
comment.
Abu Dhabi and GIC weren't immediately available to comment.
--Anna Perez in Madrid and Liam Moloney in Rome contributed to
this story.
Write to Noemie Bisserbe at noemie.bisserbe@dowjones.com and
Geraldine Amiel at geraldine.amiel@dowjones.com
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