Contents
3 Sector – T&D market indicators
4 Investment summary
4 Areva T&D for sale, with wide-ranging consequences
4 Alstom the most likely buyer
5 Schneider could want the ‘D’, not the ‘T’
6 Stock recommendations
7 Areva T&D: a unique asset for sale
7 Areva: a financing gap of €4bn out to 2012
8 Areva T&D: a €4.3bn asset that appears slated for sale
11 Alstom, the prime candidate for an acquisition of Areva T&D
11 Alstom’s background in T&D
11 Strategic rationale for an acquisition of Areva T&D
13 Financial impact for Alstom
15 Splitting Areva T&D into Transmission and Distribution is another attractive option
15 Schneider eyeing Areva’s Distribution activities
18 Siemens on the look-out
18 GE targeting smart grid opportunities but not a serious contender
19 T&D demand showing resilience but first signs of price erosion
19 Resilience factors driving demand for grid equipment
23 Stimulus packages further support demand
24 First signs of pricing erosion
26 T&D - Basics
27 T&D market positioning
29 Company updates
ABB
Alstom
Areva
Schneider
Siemens