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FACTBOX: Impact of Royal's election pledges on French stocks

PARIS
Wed Apr 18, 2007 8:19am EDT

PARIS (Reuters) - Here are some of the main proposals of Socialist presidential candidate Segolene Royal and the stocks analysts say could be impacted if she won the French presidential elections.

World

- Raise monthly minimum wage to 1,500 euros over five years; 5 percent increase in small pensions at or below minimum wage.

POSITIVE IMPACT: Retailers Carrefour and Casino.

- Build 120,000 public housing units a year; extend the use of zero-rate loans for first-time home-owners with low income.

POSITIVE IMPACT: Nexity, Kaufman & Broad, Nouveaux Constructeurs, Bouygues, Vinci, MeilleurTaux, Saint-Gobain, Lafarge.

- Regulate banking fees and sanction consumer-lending institutions that grant loans to insolvent persons.

NEGATIVE IMPACT: Banks BNP, Credit Agricole, Societe Generale and consumer lenders Cetelem (BNP), Sofinco and Finaref (Credit Agricole), and Cofinoga (BNP-Galeries Lafayette).

- Wants public television funded by a tax on the advertising revenues of private channels.

NEGATIVE IMPACT: Private TV broadcasters TF1 and

M6.

- Tax companies more on dividends, less on reinvested profits.

NEGATIVE IMPACT: Companies with the most generous distribution policy such as M6, France Tel, TF1, hotelier Accor, wines and spirits group Remy Cointreau, and investment company Wendel Investissement.

- Impose an "exceptional levy" on oil firms to fund transport initiatives.

NEGATIVE IMPACT: Total, and possibly foreign refiners active in France such as ExxonMobil and Royal Dutch Shell.

- Royal says she is not "dogmatic" that 87-percent state-owned EDF should be renationalize, but the government should keep control of the power giant.

- Would revoke GDF-Suez merger. An advisor of Royal said there was a need to strengthen links between EDF and GDF, but rejected a merger of the two groups.

- Expected to keep retail electricity tariffs regulated below market levels.

NEGATIVE IMPACT: EDF.

- Cut the share of electricity generated by nuclear power in France from 78 pct to 50 pct by 2017, which implies shutting down about 20 nuclear power plants.

NEGATIVE IMPACT: Areva and EDF.

Increase the share of renewable energy sources to 20 pct by 2020 and to 50 pct in the longer term.

POSITIVE IMPACT: EDF's 50 percent listed wind farm subsidiary EDF Energies Nouvelles and Theolia.

- Calls for a "moratorium" on EADS's restructuring plans which include 10,000 job losses -- 4,300 of which in France-- and says the state would recapitalize the company and redefine the management.

NEGATIVE IMPACT: EADS

(list of stocks established from research notes from UBS, Societe Generale, Barclays, Berstein Research, Lehman Brothers and HSBC)



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