New EDF CEO Henri Proglio plans closer ties with water company Veolia
Associated Press
11/26/09 12:55 PM EST
PARIS — The new head of state-controlled Electricite de France said Thursday he plans to seek closer ties with Veolia Environnement, the water company he used to run and for which he remains non-executive chairman.
Henri Proglio, 60, took over as chief executive of EDF on Wednesday. His government-sponsored appointment has caused a stir in France because of his intention to continue at water and waste company Veolia.
Proglio said he will propose that EDF take a 15 percent stake in Veolia, and that Veolia takes over EDF's 34 percent stake in Dalkia, the energy unit run by both companies, according to Le Monde newspaper.
He told Europe-1 radio that he has no plans to merge the two companies but said that closer industrial links "make plenty of sense."
He denied a conflict of interest.
The new EDF chief stoked a controversy in France last week when he said that he wanted a rethink of the French nuclear industry. He said he has no plans to buy a stake in EDF's nuclear rival, Areva, Le Monde reported Thursday.
The French government is the biggest shareholder of EDF, with an 85 percent stake.
