May 7, 2015 / 2:25 PM / 4 years ago

Areva, EDF alliance talks stall over valuation - sources

The Areva logo is seen on the Areva Tower, the headquarters of the French nuclear reactor maker Areva, at La Defense business and financial district in Courbevoie near Paris May 7, 2015. REUTERS/Charles Platiau

PARIS (Reuters) - Talks for French utility EDF (EDF.PA) to buy nuclear group Areva’s AREVA.PA reactor business are stalling amid disagreements about its value, two sources close to the talks told Reuters on Thursday.

The companies, and the government as owner of 87 percent of Areva and 85 percent of EDF, are looking at two scenarios.

The first is a takeover only of Areva’s nuclear engineering arm. The second is a takeover of Areva’s entire nuclear reactors unit, of which the engineering business is part.

Both sources said EDF had made a firm offer of 280 to 300 million euros for the engineering unit, which employs about 10,000 staff, and which Areva values at 1 billion euros ($1.13 billion).

The second scenario would involve a complete takeover of Areva’s nuclear reactor unit - called Areva NP - which employs about 17,000 people, of which 10,000 are in France.

Additional reporting by Geert De Clercq and Matthieu Protard; Editing by Andrew Callus

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