France has agreed to sell a 3.1 per cent stake in gas utility GDF Suez, and could sell as much as 3.6 per cent, to finance the acquisition of a state participation in engineering group Alstom, the government has said.

The finance and economy ministries said in a joint statement that the state, via public holding firm APE, had agreed to sell 75 million GDF Suez shares, with an overallotment option to sell as many as 86 million shares in an accelerated institutional placement.

Based on yesterday’s €20.81 closing price, the operation would yield the state between €1.56-€1.79 billion.

The sale will leave the French state – lead shareholder in GDF Suez with 36.71 per cent stake – with a residual stake of about 33.6 per cent.

By law, the French state cannot reduce its stake below 33.3 percent. – (Reuters)