French, Finnish reactor problems cast shadow over UK nuclear plan
Source: Reuters
* Finland claims hold up EDF takeover of Areva unit
* French government wants resolution in a month
* Flamanville weak spots potentially bigger threat
* Hinkley Point too crucial for EDF to abandon
By Geert De Clercq and Benjamin Mallet
PARIS, Jan 28 Intractable problems at two nuclear plants under construction in France and Finland threaten more delays to EDF's plan to build four nuclear reactors in Britain.
<snip>
Now it is being delayed by EDF's planned takeover of the reactor arm of Areva, which itself is being held up by EDF's refusal to take on financial responsibility for delays and cost overruns at an EPR Areva is building in Finland.
<snip>
On Wednesday, the French state came to the rescue of Areva - virtually bankrupt after four years of losses - with a five billion euro capital increase and EDF agreed on a provisional valuation of 2.5 billion euros for the reactor business.
Areva shares surged as much as 35 percent on Thursday.
But EDF also said it would not make a binding offer for Areva's reactor arm until it is "completely immunised" against any risks related to Areva's Olkiluoto 3 (OL3) reactor project in Finland.
<snip>
A source familiar with the situation told Reuters that before finalising Areva's reactor arm takeover, EDF wants guarantees not only for OL3, but also for Flamanville.
"EDF's offer depends on total immunisation against the OL3 case and the Flamanville vessel," the source said.
<snip>
Read more: http://uk.reuters.com/article/edf-britain-idUKL8N15C22S
