* Disposal completed at 11.90 euros per Veolia share
* Compares with Tuesday closing price of 12.185 euros
(Adds share price reaction, dividend)
PARIS Nov 27 French state-controlled utility
EDF said it raised about 262 million euros ($355
million) by selling its entire 4.01 percent stake in water and
waste group Veolia Environnement.
The disposal was completed at 11.90 euros a share, or a 2.3
percent discount to Veolia Environnement's Tuesday closing price
of 12.185 euros, EDF said in a statement. Veolia shares had
risen about 42 percent since early July.
The price compared with a range indicated by traders of
11.85 euros to 12.185 euros in the offering, which was managed
by Morgan Stanley.
Shares in Veolia fell 1.5 percent to 12 euros in early trade
on Wednesday, giving the company a market value of about 6.6
billion euros, dwarfed by EDF's 50 billion.
EDF also announced a cash interim dividend for 2013 of 0.57
euros a share, unchanged from a year ago, and confirmed its 2013
payout ratio target of between 55 percent and 65 percent of the
net income excluding non-recurring items.
EDF had been Veolia's fourth-largest shareholder, ahead of
the government of Qatar with a 3.79 percent stake. French
state-owned bank CDC is the leading shareholder, followed by
Groupe Industriel Marcel Dassault and Groupama Asset Management
EDF, whose head Henri Proglio led Veolia until 2009, has
been unwinding its ties with the water and waste firm. Earlier
this month, the two companies agreed to split up their Dalkia
joint energy services unit, with EDF taking over Dalkia's French
business and Veolia its international activities.
For EDF, the Dalkia deal and the Veolia stake sale are part
of a strategy to sell minority stakes in subsidiaries.
The Dalkia deal had been one of the most difficult to unwind
due to acrimony between Proglio and his successor at Veolia,
Frerot has spent recent years cutting debt and selling
assets in the wake of Proglio's debt-fuelled expansion spree and
survived an attempted boardroom coup to unseat him last year.
($1 = 0.7374 euros)
(Reporting by James Regan; Editing by David Holmes and Louise