French, LUKoil Seen in Power Bid

Gaz de France is in talks with LUKoil to jointly bid for control of power generator TGK-10, sources close to the regional generating company's planned share issue said Monday.

The oil company has yet to make a final decision, sources said. LUKoil declined to comment. Gaz de France officials could not immediately be reached for comment.

TGK-10, which has a generating capacity of 2.8 gigawatts, provides power and heat to several regions of western Siberia, the country's key oil-producing region. TGK-10 plans to hold a secondary offering of 633 million shares in February equal to 136.55 percent of its share capital before the sale and 57.73 percent thereafter.

At the same time, TGK-10's parent company, former power monopoly Unified Energy System, will sell the government's stake in the generator, equal to 255.56 million ordinary shares.

Rosneft and Finland's Fortum were also considering bidding for TGK-10, a source close to the deal said last month.