🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Exclusive: EDF boss knew UK planned to delay nuclear deal before board vote - letter

Published 08/03/2016, 11:01 AM
© Reuters. File photo of Jean-Bernard Levy, CEO of France's state-owned electricity company EDF, who poses after the company's 2015 annual results presentation in Paris
EDF
-

By Geert De Clercq

PARIS (Reuters) - EDF (PA:EDF) CEO Jean-Bernard Levy knew the UK government wanted to take more time to review the Hinkley Point nuclear contract before the French utility's board voted to approve the investment, he said in a letter to top executives.

EDF's board narrowly approved the $24 billion project on July 28. But hours later the government of new British Prime Minister Theresa May, which had been expected to sign contracts the following day, instead said it wanted to give the plans further consideration.

The UK government postponed its final decision on the project until early autumn.

In comments to reporters at French state-controlled EDF's first-half earnings release on July 29, Levy had said he had not been aware at the time of the board meeting that the British government wanted more time to review the contract.

In a letter emailed to EDF's executive committee late on Tuesday this week, and reviewed by Reuters, Levy said that when he called the board meeting on July 21, he had done so with the go-ahead of the French state, which "had warned us that in light of her very recent arrival, the new British prime minister had asked for 'a few days' before deciding on the project".

Levy said that late on July 27, the night before the board meeting, he was informed that May wanted "a bit more time, without calling into question the project, and without specifying the date when the contract could be signed".

He added that EDF canceled a contract signing ceremony planned for July 29.

"When the board voted, on the afternoon of July 28, we (management) therefore knew that the ceremony would not take place the next day," Levy wrote.

EDF declined to comment on Levy's letter.

© Reuters. File photo of Jean-Bernard Levy, CEO of France's state-owned electricity company EDF, who poses after the company's 2015 annual results presentation in Paris

($1 = 0.7491 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.