Crédit Lyonnais has strengthened its relationship with the French state after winning a surprisingly large role as adviser to the government on the planned privatisation of Electricité de France (EdF) alongside Morgan Stanley.

The initial public offering could be the largest privatisation ever in Europe as François Roussely, chief executive of EdF, told a parliamentary committee that the utilities giant is worth about €40bn ($38.9bn). Analysts have valued the firm at about €60bn. The initial public offering is scheduled for the first half of 2004.