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UPDATE 1-EDF board to review restructuring plan on May 28 - Le Parisien

Geert De Clercq

* New holding company may not be 100 pct state-owned

* Enedis capital could be opened to private investors (Adds detail)

PARIS, April 15 (Reuters) - French utility EDF will kick-off its restructuring plan with a May 28 board meeting to discuss plans for a partial renationalisation of the state-controlled utility's nuclear activities, Le Parisien newspaper reported on Monday.

State holding company APE chief Martin Vial and a finance ministry official confirmed that the board's strategy committee would review a restructuring plan for the firm on May 28, Le Parisien reported.

It added that on June 7, the plan - codenamed Project Hercules - would be presented to 200 top managers and on June 20 to union representatives.

APE was not immediately available for comment. An EDF spokesman declined to comment.

The French government has long been looking at how to restructure EDF in order to isolate its capital-intensive nuclear business from stock market pressures.

It said in November it would consider increasing the state's stake in EDF from its current 83.7 percent level and possibly create a new parent company with subsidiaries.

In February, EDF chief executive Jean-Bernard Levy said the government had asked him to make proposals for a restructuring by the end of 2019.

Le Parisien said financial institutions including Société Générale, JP Morgan, UBS, Oddo and Natixis were working on several restructuring scenarios, with the most likely outcome the creation of a new holding company that would allow the group to ring-fence financial risks associated with nuclear energy.

That new holding company may not be wholly state-owned, because of the high cost of renationalising. EDF has a market capitalisation of 41 billion euros ($46.36 billion).

The paper said the new holding company would include nuclear activities and wholesale power sales, and possibly also EDF's hydropower plants. The holding company would also hold a majority stake in a second holding company which would include EDF's retail power sales, grid units RTE and Enedis, EDF Renewables, reactor builder Framatome and energy services group Dalkia.

Enedis may partially open its capital to private investors, Le Parisien reported.

The restructuring plan would be submitted to European Union competition authorities in 2020 with a view to implementing it in 2021, said Le Parisien?.

EDF operates 58 nuclear reactors which produce about 75 percent of France's electricity. The company requires a massive investment programme to upgrade its ageing reactors, and is struggling to complete a long-delayed reactor under construction in Flamanville. ($1 = 0.8843 euros) (Reporting by Geert De Clercq; editing by Richard Lough)