Two Final Bidders Left for Total's TIGF Unit - Sources

By Noemie Bisserbe and Geraldine Amiel

PARIS--Two consortia led by French power group Electricite de France SA (EDF.FR) and state-owned financial institution Caisse des Depots are the remaining bidders for Total SA's (TOT) gas storage unit TIGF, according to people with direct knowledge of the matter.

TIGF was put up for sale by the oil and gas company last autumn as part of a wider strategy to sell as much as 20 billion euros ($26.74 billion) worth of assets by 2015 to help boost its cash-flow, and finance substantial investments. TIGF is valued at between EUR2.5 billion and EUR3 billion, according to analyst estimates.

Initially, seven companies or consortia had expressed interest in TIGF, Total said. Only two bidders are now lined up, five people familiar with the matter said. The first consortium led by EDF also includes the Government of Singapore Investment Corp., and Italian energy company Snam SpA (SRG.MI), the people said.

CDC Infrastructure, a fully owned subsidiary of CDC, leads a second consortium that comprises AXA Private Equity, Credit Agricole SA's (ACA.FR) insurance unit Predica, Abu Dhabi Investment Authority and Belgium's natural gas operator Fluxys Belgium SA (FLUX.BT).

Spanish energy company Enagas is no longer in the running, the people familiar with the matter said. A spokeswoman for Enagas said the company was evaluating whether to pursue the bid and would announce its decision next Monday after the company's board meeting.

The companies will submit their final bids by Feb. 4, two of the people said.

TIGF, or Transports Infrastructures Gaz France, is viewed as a stable investment with activities that are regulated, granting steady returns. It specializes in gas transport and storage, a business seen as crucial as France is seeking to gradually lower the share of nuclear energy and promote renewable sources and gas-fired plants.

Total has requested potential buyers to protect jobs and working conditions and maintain TIGF's headquarters in the southwestern town of Pau. TIGF employs 500 people and generates EUR353 million a year in revenue.

EDF, which owns a 20% interest in the consortium, would set aside its share of the assets in a special account as required by law, to finance the dismantling of nuclear reactors, one of these people said.

Spokesmen for CDC and Fluxys declined to comment. A spokeswoman for EDF declined to comment. A spokesman for Total also declined to comment.

Abu Dhabi and GIC weren't immediately available to comment.

--Anna Perez in Madrid and Liam Moloney in Rome contributed to this story.

Write to Noemie Bisserbe at [e-mail] and Geraldine Amiel at [e-mail]

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