(Updating with reappointment of Cattaneo as CEO)
MILAN (Thomson Financial) - Terna SpA CEO Flavio Cattaneo said that the
current price Enel SpA is asking for the sale of its high-voltage power line
assets is too high.
Cattaneo noted that the Enel power lines are distribution assets but added
they have the same kind of returns that transmission grid assets offer.
"If the price convinces us, and currently it does not, I think they can be
easily converted into transmission lines," Cattaneo said, speaking at the Terna
anual shareholders meeting.
Enel CEO Fulvio Conti recently said talks with national power grid operator
Terna over the sale of the power lines are "dedicated", explaining that other
bids for the assets will not be examined unless the talks with Terna falter.
A Milan-based energy analyst said the disposal of the power lines will raise
1.2 billion to 1.3 billion euros if the sale goes ahead with Terna but could
fetch 1.3 billion to 1.5 billion euros if a tender bid is launched.
A board meeting immediately after the shareholders meeting unanimously
reappointed Cattaneo as CEO.
stephen.jewkes@thomsonreuters.com
sj/lam
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