M&A

25 November, 2009

Elia back in running for Vattenfall's grid-sources

FRANKFURT, Nov 25 (Reuters) - Belgian grid operator Elia System Operator SA (ELI.BR) is back in the race for Vattenfall's [VATN.UL] German high-voltage grid after the Swedish power group opened the sale process to more potential buyers again, two people familiar with the matter told Reuters.

For months, Vattenfall had been in exclusive talks with a consortium of Deutsche Bank AG (DBKGn.DE), Allianz SE (ALVG.DE) and Goldman Sachs Group Inc (GS.N), but it has now resumed negotiations with other parties including Belgian utility Elia, the sources said.

In a letter sent to employees on Wednesday, Vattenfall Europe said it had not been able to agree on some key points with the consortium.

"Unresolved were among others the purchase price as well as secondary conditions relevant to the price," it said in the letter seen by Reuters, adding it no longer expected to sell the grid by the end of this year.

Vattenfall declined to comment on the matter.

The move comes after rival E.ON AG (EONGn.DE) fetched a price of 1.1 billion euros in a sale of its German long-distance power grid to TenneT.

People with knowledge of the matter told Reuters in early November that the Swedish utility had already agreed in principle to the sale of its German power grid. [ID:nWEA8407]

The Swedish power producer said on Nov. 16 it had appointed a new chief executive to replace Lars Josefsson, adding the change would not affect the planned sale of its German electricity grid. [ID:nBAT004962] ($1 = 0.6679 euro) (Reporting by Philipp Halstrick; Writing by Maria Sheahan, editing by Gerald E. McCormick) ((ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters Messaging: ludwig.burger.reuters.com@reuters.net))

Source: http://www.reuters.com