France’s EDF confirms talks about Iberdrola

8 February 2008

MADRID – French energy giant EDF said Friday it had been in contact with Spanish construction group ACS to discuss their respective interests in Iberdrola, Spain’s second largest power company.

EDF told the Spanish financial market authority in response to an official request for information that it had had contacts with ACS "in order to examine their respective interests in Iberdrola."

"These contacts were purely preliminary," EDF added in a brief statement.

Earlier this week, ACS, which holds 12 percent of Iberdrola, said it had held talks with EDF over their joint interest in Iberdrola but but that no agreement had been reached.

The company said the talks were "normal" between energy operators.

Meanwhile press reports said Iberdrola was in contact with La Caixa bank to study a possible tie-up with Spain’s top gas company, Gas Natural.

El Economista daily said Iberdrola and La Caixa "had begun exploring the possibility of creating a great European energy champion with Gas Natural."

It said two options were under consideration — a straight Iberdrola-Gas Natural merger or Gas Natural buying 30 percent of Iberdrola, with La Caixa being the main shareholder of the grouping.

[Copyright AFP 2008]

Subject: Spanish news