Suez to start Gaz de France talks

The merger has already been postponed several times

French utility Suez has given its chairman permission to pursue talks to secure its delayed 80bn euro (£54bn; $106bn) merger with Gaz de France.

Suez said the merger with currently state-run GDF was the best strategic option for the company.

The news comes a week after a French court said GDF could be privatised, but not until 1 July 2007, effectively delaying the merger until then.

The government backs the merger, saying it will ensure greater energy security.

However opposition parties say the move would push up prices. Trade unions fear it could lead to job losses.

A tie-up between Gaz de France and Suez was first proposed at the start of this year.

It was widely regarded as a way to prevent the Italian firm Enel from taking over Suez.