Areva to chose T&D winner by Dec. 9 - source

PARIS, Nov 19 (Reuters) - France's Areva (CEPFi.PA) will have to make a decision on the sale of its transmission and distribution business (T&D) by Dec. 9 when its three bids expire, a source close to the situation told Reuters.

Last week, Toshiba (6502.T), in consortium with Innovation Network Corp. of Japan, General Electric (GE.N) and French partners Alstom (ALSO.PA) and Schneider Electric (SCHN.PA) submitted binding bids for Areva's coveted T&D business.

Those bids will not be valid after Dec. 9, so Areva will be forced to chose a winner by then or walk away from the sale.

The source added that Areva was likely to announce a shortlist of one or two bidders with whom it is in exclusive talks by Nov. 23.

Areva declined to comment.

According to French media, Toshiba offered 4.2 billion euros ($6.25 billion) to buy Areva, while Alstom-Schneider, whom many believe is favoured to win by French President Nicolas Sarkozy, have offered around 4 billion.

Areva, which is 91 percent owned by the French state, wants to sell its T&D business to fund 11 billion euros in investment between now and 2011. The plan also includes a capital increase by floating up to 15 percent of the company on the stock market. ($1=.6722 Euro) (Reporting by Benjamin Mallet; Writing by Nina Sovich; editing by Elaine Hardcastle)