Total In Talks With Consortium Of Snam, EDF And GIC On Proposed Sale Of TIGF

RELATED NEWS

Trade TOT now with

2/6/2013 12:42 AM ET

French oil giant Total SA (TOT: Quote,TTFNF.PK,TTA.L) on Wednesday said it has entered into exclusive negotiations with a consortium regarding the proposed sale of all outstanding shares of Transport et Infrastructures Gaz France or TIGF. The offer values the company at 2.4 billion euros. Total said the proposed sale is aligned with its active portfolio management strategy.

The consortium, comprising French utility group Electricité de France S.A. or EDF (EDFEF.PK), Italian natural gas transportation and distribution services provider Snam SpA (SNMRY.PK,SNMRF.PK) and Government of Singapore Investment Corp. or GIC, has submitted a firm offer to acquire TIGF.

TIGF, with almost 500 employees, provides gas transmission and storage services in southwestern France. It manages a network of about 5,000 kilometers of pipeline that carries 13 percent of the total volume of gas transported in France and operates 22 percent of the country's gas storage capacity. TIGF generated revenues of over 350 million euros in 2011.

The proposed sale is subject to information and consultation procedures with the relevant employee representative bodies, including consultation with relevant authorities.

Total noted that the dialogue was initiated with employee representatives from the commencement of the process leading to an agreement — "Undertakings in Case of the Sale of TIGF" — that was signed on January 23. In particular, the agreement includes provisions concerning maintaining jobs, benefits and TIGF's headquarters in Pau.

Christophe de Margerie, Chairman and CEO of Total, said, "The consortium selected, consisting of industry-leading operators and long term investors, will support TIGF in its further development, while meeting the commitments made to TIGF's employees and partners."

In Paris, Total shares closed Tuesday's trading at 39.45 euros, up 0.45 euros or 1.15 percent.

To receive FREE breaking news email alerts for Total SA and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

<<Previous 59 Articles

Editors Pick

China May Leading Index Signals Weaker Economic Growth Ahead

A leading indicator of Chinese economic activity rose marginally in May and at a slower pace than a month earlier, suggesting more sluggish growth for the overall economy in the months ahead. The Conference Board said that its leading economic indicator rose 0.3 percent month-on-month in May, slower than a 1.5 percent increase in April. Only three of the six components contributed positively.

Stocks Close Mostly Higher Despite Afternoon Pullback - U.S. Commentary

While lingering worries about the outlook for the Federal Reserve's stimulus program generated some selling pressure in afternoon trading on Monday, stocks managed to end the day mostly higher after seeing an early rally on the heels of some upbeat economic data. The major averages finished the session well off their best levels of the day but still posted strong gains.

Poll Shows Sharp Drop In Obama's Approval Rating

In an apparent backlash from the numerous scandals facing the administration, the results of a new CNN/ORC International survey released Monday showed a sharp drop in President Barack Obama's approval rating. The poll found that 45 percent of Americans approve of the way Obama is handling his job as president, down from 53 percent in a poll conducted last month.