MILAN (Thomson Financial) - E.ON AG CEO Wulf Bernotat said he expects to
complete the deal with A2A SpA over the Italian utility's 20 percent stake in
Endesa Italia before the third quarter this year.
In an interview in the daily Corriere della Sera, Bernotat said A2A could
remain as a shareholder of Endesa Italia if it so decided.
"If A2A decides to leave and wants power plant assets in exchange for its
stake it will have to pay the difference in cash," he said.
He said A2A will not be allowed to walk off with the top pick of generating
assets in Endesa Italia in exchange for its stake.
Earlier this week A2A chairman Giuliano Zuccoli said the group intends to
transfer its Endesa Italia stake to E.ON in return for assets and a small part
in cash.
Zuccoli said the assets should amount to 1,700 megawatts in generation
capacity and include a hydroelectric plant in Calabria, the coal-fired Fiume
Santo plant in Sardinia, a gas-fired plant in Trapani, Sicily, and some wind
farms.
Endesa SA was acquired by Enel SpA and Acciona SA last year.
As part of the deal E.ON was offered assets of Endesa Europa, which includes
Endesa Italia.
Asked about his group's strategy in Italy, Bernotat said E.ON intends to
pursue organic growth and the integration of the various companies acquired by
E.ON Italia.
He said the Italian energy market still offered a high growth potential
because "it is dependent on electricity imports while prices are higher than in
central Europe and so the margins are higher".
Bernotat said that in principle Enel could be allowed to buy some of the
4,800 megawatts of capacity E.ON will be forced to sell on its domestic market
but added it is too early to speculate on contenders for the capacity.
stephen.jewkes@thomson.com
sj/slm
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