Platts - Wednesday, February 08, 2006 http://www.platts.com ------------ Hungary's nuclear power company 'not for sale yet': premier Budapest (Platts)--8Feb2006 Hungary's sole 1,880MW nuclear power generating company Paksi Atomeromu is not for sale yet, said the country's prime minister, Ferenc Gyurcsany, Tuesday after visiting the plant, located outside the town of Paks. "By law the four blocks operated by Paksi must remain in state ownership," said Gyurcsany. At the same time he added that the addition of any new reactor blocks to expand the plant would have to pass through a referendum. Gyurcsany visited the plant in a ceremony that marks the 30th anniversary of the inauguration of its first 460MW Block-1. "There is always talk about adding new blocks to Paksi, but so far nothing has been decided and nor is any such decision on the agenda of the plant's or the government's plans," said Gyurcsany. The leading opposition party, the center-left Fidesz has accused Gyurcsany of not commenting on the delay to the removal of the damaged nuclear rods still stranded in a cleaning tank near the main reactor of Paksi's 460 MW Block-2. And also of not commenting on whether the government is planning to decrease the price of power for household consumers due to having the cheapest source of power (Paksi) secured by the state-owned power wholesaler Magyar Villamos Muvek (MVM). This is despite the fact, in long-term power purchase agreements (PPAs), majority privately-owned power generating companies are allowed to make a 22% return on assets. Fidesz MP Mozes Lazar said, "Gyurcsany is talking about keeping Paksi in state hands when all parliamentary parties have long agreed to keep it state owned." For more nuclear news, request a free trial to Platts Nucleonics Week at http://www.platts.com/Request%20More%20Information/ ------------ EnergySolutions plans to purchase Duratek Washington (Platts)--7Feb2006 EnergySolutions plans to buy Duratek for about $396-million. The companies today announced an agreement under which EnergySolutions (formerly Envirocare of Utah) would buy all of Duratek's stock for $22 a share. EnergySolutions said the purchase would complement its technologies and services in the areas of low-level radwaste characterization and minimization. A few days ago, EnergySolutions announced it would buy BNG America, British Nuclear Fuels plc's U.S. cleanup company. ------------ EnergySolutions to buy nuclear material firm Duratek for $396-mil Washington (Platts)--7Feb2006 Nuclear material handling firm Duratek said Tuesday that it has signed a merger agreement with EnergySolutions, in which EnergySolutions will acquire Duratek for $396-mil ($22/share) in cash. The price represents a 25.7% premium above the $17.50/share closing price of Duratek's stock on Feb 6, which was down 8 cts/share for the day. The transaction includes the assumption of Duratek's outstanding debt. The deal will be funded through a combination of debt to be provided by a group of banks led by Citigroup, cash held by both companies and equity provided by the owners of EnergySolutions. Salt Lake City-based EnergySolutions provides nuclear waste management services and solutions to the nuclear energy industry. It is owned by a private investor group led by Lindsay Goldberg & Bessemer, Peterson Partners and Creamer Investments. Duratek said changing domestic and international markets for its services present opportunities for growth and challenges for the company and its investors. "The acquisition by EnergySolutions not only provides very significant current value for our stockholders, but it enables Duratek to become an even more significant service provider in its markets," Duratek President and Chief Executive Robert Prince said. The transaction has been approved by the board of directors of each company and is subject to approval by Duratek's stockholders, regulatory approval and other customary closing conditions contained in the merger agreement. Duratek expects to submit the merger to stockholders for their consideration during the second quarter of 2006 and to close the merger promptly if it receives stockholder and regulatory approval. ---Tom Tiernan, tom_tiernan@platts.com For more information, take a trial to Platts Electricity Alert at http://electricityalert.platts.com. ------------ Toshiba, BNFL sign $5.4-billion Westinghouse agreement London (Platts)--6Feb2006 British Nuclear Fuels plc (BNFL) signed a $5.4-billion contract to sell Westinghouse to Toshiba Corp., with the sale expected to be finalized within approximately six months. "We have completed our due diligence and are satisfied this sale is the right move for our business," said Toshiba President/CEO Atsutoshi Nishida at a signing ceremony in London today with BNFL CEO Mike Parker. The sale must now be approved by government regulators, BNFL said in a press statement. BNFL underscored that Toshiba believed the Westinghouse leadership and employees were a key business asset and intended to keep its reliance on them. The Springfields fuel making complex in the U.K. will remain "an integral part of the Westinghouse business" so long as Westinghouse continues managing the site under contract to the state-run U.K. cleanup body, Nuclear Decommissioning Authority, said a well-placed BNFL source. Copyright © 2006 - Platts, All Rights Reserved ------------