Reports Of EDF CEO Being Replaced Are "Baseless" - French Government
08/17/2012| 06:01am US/Eastern
By Geraldine Amiel
PARIS--Reports that Henri Proglio, the chairman and chief executive of Electricite de France SA (>> EDF) is to be replaced by Guillaume Pepy, head of the French state-owned railway company SNCF, are "baseless," a spokesman for the French government said Friday.
French daily Le Parisien reported, citing a well-informed source, that Mr. Pepy was considered for the post due to his proximity to the socialist government, while Mr. Proglio openly opposed the new administration's aim to reduce the amount of nuclear power in France's energy mix.
The renewed speculation has helped creat uncertainty regarding EDF's strategy when the group, the world's largest nuclear operator, is finalizing substantial investments to build new reactors in the U.K. and has just secured the control of Italy's second largest utility Edison SpA (>> Edison SpA), and pushed the shares down.
At 0930 GMT, shares in EDF were trading 0.8% lower at EUR16.75 while the CAC-40 benchmark index was up 0.3%.
"We deny that Henri Proglio is leaving and that any decision he should leave has been made," a spokeswoman for EDF said. A spokeswoman for SNCF declined to comment.
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