Sources say that EDF is in contact with banks to discuss the IPO of Edison.

Three sources confirmed that senior executives of EDF were meeting with investment banks in Paris to discuss options for the French utility's Italian Edison business, which included a return on the stock exchange, according to Wednesday's report.

State-owned EDF, under the leadership of its new CEO Bernard Fontana has begun reviewing its assets in order to raise funds to meet government requirements for investment in new nuclear reactors.

Sources said that EDF's Italian subsidiary may consider an initial public offering (IPO), bringing in a financial sponsor, or selling a stake of the company to an industrial partner.

One person said that EDF would retain a majority stake in any deal.

According to two sources, Edison's value could range between 8 and 11 billion euros (between $8-$11,6 billion).

Two sources said that a listing on the stock market is the best option at this time to extract value from the company without loosing its grip. EDF may choose to sell between 30-35% shares of Edison in an IPO.

Sources said that the French group would choose its financial advisors by the end this month.

EDF has not responded to a comment request. Edison declined to comment.

The Italian company has already established the corporate structure and procedures required for its stock to be traded publicly.

EDF retained Edison's saving shares in Milan when it took Edison private and acquired its full control in 2012. This is a special share class that offers a higher dividend but does not allow holders to vote at shareholder meetings.

Edison reported revenues last year of 15,4 billion euros, and a core income of 1.7 billion euro.

(source: Reuters)