Tuesday February 5, 07:05 PM
Spain's ACS confirms talks with EDF over Iberdrola
MADRID (AFP) - Spanish builder ACS (Madrid: ACS.MC - news) confirmed Tuesday it had held talks with French power giant EDF (Paris: FR0010242511 - news) over their joint interest in Iberdrola (Madrid: BIB.MC - news) , Spain's second-biggest energy utility, but said no agreement had been reached.
In a statement sent to Spanish stock market regulator CNMV, the firm said "it had held talks with EDF regarding the European energy sector and its interest in Iberdrola and the Spanish market in general."
The company said the talks were "normal" between energy operators.
ACS detains just over 12 percent of wind energy specialist Iberdrola and owns about 45 percent of Union Fenosa SA, Spain's third-largest power company.
Earlier this month the Financial Times, citing political and investment bank sources, reported that EDF -- Europe's largest power producer -- and ACS were in early talks regarding a joint bid for the Spanish power firm.
Spanish Prime Minister Jose Luis Rodriguez Zapatero and French President Nicolas Sarkozy were aware of the talks between the companies, which may divide up Iberdrola if their bid is successful, the newspaper added.
Ealier Tuesday Spanish business daily El Economista, siting unnamed French sources, reported that EDF wants to obtain a 30 percent stake in Iberdrola and then join forces with local builder ACS to control the company.
The deal would be done after a March 9 general election in Spain, it added.
ACS also wants to have a 30-percent stake in Iberdrola to ensure the company retains its Spanish identity and to enable it to join forces with Union Fenosa, the newspaper added.
In Paris Tuesday, a spokesman for EDF said "nothing is yet decided," adding that "there are many possible schemes."
Carlos March, head of the March bank, which controls ACS' leading shareholder, financial group Alba (LSE: ABA.L - news) , later told a press conference "there had been talks with EDF and other players in the Spanish and international electricity sector."
He cited Gas Natural (Madrid: GAS.MC - news) and Repsol (Madrid: REP.MC - news) of Spain and RWE (Xetra: 703712 - news) and E.ON of Germany.
Spain's Deputy Prime Minister Maria Teresa Fernandez de la Vega said Friday that EDF had not made any "concrete proposal" on Iberdrola.
"The interest on the part of the French firm in moving into Spain is public. Having said that, as of today ... there is no concrete proposal of any sort," she said.
Speculation about Iberdrola's future has been growing after EDF said it was interested in the Spanish market but it has not commented specifically about the company or any possible tie-up.
Press reports said Monday that Iberdrola chairman Ignacion Sanchez Galan was looking for Spanish investors in order to bolster the company's position.
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