MILAN (Thomson Financial) - A2A SpA chairman Giuliano Zuccoli said he hopes
to be able to take possession of the Endesa Italia power generation plants by
October.
"Relations with both E.ON AG and Enel are very positive and so I don't
expect any legal complications. Perhaps we will have the plants in our control
on October 1," Zuccoli said in a conference call with analysts.
Endesa SA was acquired by Enel SpA and Acciona SA last year. As part of the
deal, E.ON AG was offered assets of Endesa Europa, which includes Endesa Italia.
A2A currently owns 20 percent of Endesa Italia and is in talks to obtain
Endesa Italia assets in exchange for its stake.
Zuccoli also said he is confident of having a proposal ready before the
summer for the merger of holding company Delmi into A2A with the aim of
simplifying the chain of control at Edison SpA.
Zuccoli said the operation will probably involve a capital increase, the use
of A2A's own shares and a cash component.
He said the Milan city administration, which jointly controls A2A with the
Brescia town council, is in favour of A2A moves to simplify the Edison control
structure.
Edison is 63.3 percent controlled by Transalpina di Energia, which is in
turn 50 percent controlled by Delmi and 50 percent by France's EDF.
In Delmi, A2A holds 51 percent while Enia SpA has 15 percent, and Dolomiti
Energia and Sel 10 percent each.
Asked about guidance for the full year, Zuccoli said the target the company
provided of results no lower than those achieved in 2007 was prudent.
He said the outlook for power prices, waste business and hydroelectric
production was good but added there are a few negative elements to be considered
in the equation.
"It's still early. Let's wait a few months and then we'll see," he said.
On corporate governance, Zuccoli said the company has received no request
from the Brescia city council to change its dual management model.
"The dual system can be a necessary and opportune instrument for M&A
activity," Zuccoli said.
Press reports recently reported the new mayor of Brescia as saying he does
not agree with the dual management model.
stephen.jewkes@thomsonreuters.com
sj/ra
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