REFILE-FACTBOX-Possible buyers for Areva T&D division

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July 8 (Reuters) - French state-owned nuclear technology group Areva SA (CEPFi.PA) has decided to sell its power transport and distribution division (T&D) as part of a financing package for its ambitious growth plans. [ID:nLU456060]

A number of potential bidders have emerged for T&D, all French up to now. The unit is valued at an average of 3.7 billion euros ($5.2 billion) by five analysts polled by Reuters, although some have put the price as high as 5 billion.

Following is a summary of possible bidders:

ALSTOM SA (ALSO.PA)

Buying Areva's T&D activities would allow the French engineering group to boost its scale and diversify its business across cycles, but the market would keep a close eye on the terms of any deal, as well as any other acquisition projects.

Analysts expect Alstom to strengthen its presence in rail signalling, possibly looking at assets of France's Thales (TCFP.PA) or Italy's Ansaldo (STS.MI) of Finmeccanica (SIFI.MI).

"An acquisition like this (T&D) would allow Alstom to pad out its commercial offering and by extension its critical mass," said analyst Delphine Brault at brokerage Oddo.

She added it would balance out its exposure to different cycles and allow it benefit from expected strong growth in the sector in the medium- to long-term.

Brault said a buy of T&D would boost Alstom's revenue by 27 percent. Alstom sold the same unit to Areva in 2004 as part of conditions set by the European Commission for its approval of a 920 million euro ($1.3 billion) state-orchestrated rescue plan.

Alstom had cash reserves of almost 2 billion euros at the end of March and would need a capital increase of up to 1.5 billion euros to buy T&D. But some analysts think it should not pay more than 4 billion euros for T&D and reassure investors it can cope with an expected drop in order intake.

A buy could also represent a second prize for Alstom CEO Patrick Kron, who wanted a full merger with Areva, a scenario that is unlikely to come about in the short term.

SCHNEIDER ELECTRIC SA (SCHN.PA)

Buying T&D would be a growth opportunity for Schneider Electric but the French engineering group may need to launch a capital increase to finance an acquisition.