May 17, 2005
Electricité de France (EDF) announces partnership agreement with Milan utility AEM to take over Edison, Italy’s second-largest power group.
On May 12, Willkie client Electricité de France (EDF), the giant French state electricity company, announced it has reached a partnership agreement with Milan utility AEM to take over Edison, Italy’s second-largest power group, for approximately €12 billion ($15.4 billion), including Edison’s €4 billion debt. The accord marks the end of a four-year dispute between the two countries that began in 2001 when EDF attempted a hostile takeover bid for Edison. Questioning the accessibility of the French energy market, Italy imposed a 2% cap on EDF’s voting rights in Edision. Pursuant to the agreement, AEM and EDF are expected to become equal shareholders in the company that controls 62% of Edison and then launch a public bid for outstanding Edison shares. They will form a joint holding company called NewCo, through which EDF and AEM will manage Edison. The terms of the deal have been approved by the Italian and French governments and Italy has lifted the 2% cap. Willkie attorneys in Italy have acted for EDF since the start of the dispute. The Willkie team includes partners Maurizio Delfino and Filippo Mazza, and associates Carsten Steinhauer and Cira Caroscio.
