Areva shares leap higher on sale of Canadian asset

Shares in French nuclear energy giant Areva leapt by more than eight percent on Monday as investors welcomed a plan to cut debt by selling a Canadian-based asset. The market appeared to shrug off news of yet another delay to a new-generation nuclear power plant Areva is building in Finland. In mid-afternoon trade, Areva shares were up 8.09 percent to 11.83 euros while the SBF 120 index on which they are listed was off 0.30 percent overall. After Paris markets closed on Friday, Areva said it would sell a 63 percent stake in La Mancha Resources, a gold producer based in Canada, to Weather II Investments for a little more than 250 million euros ($305 million). Renaud Murail, a trader at Barclays Bourse called the deal "a good agreement which reassures regarding the group's ability to reduce debt and confirms its will to be self-sufficient financially. "The market was a little worried that the group would have to open its capital to deal with current difficulties. It is slightly reassured."