E.ON halts Italy gas network sale

April 22nd, 2010 - 6:10 am ICT by IANS  

Dusseldorf, April 22 (DPA) German energy giant E.ON dropped Wednesday plans to sell its gas pipelines in Italy after failing to receive any suitable bids and said it would continue to operate the network itself.
The dpa-AFX financial news agency quoted the Dusseldorf company saying it had been in talks with potential buyers to sell the 10,000-km network but their offers had fallen short of its expectations.

E.ON affirmed its intention to raise at least 10 billion euros ($13 billion) by the end of this year through sales of assets. Last year its asset sales raised 6 billion euros.

A spokesman said the sale of the Italian assets would have only amounted to a small part of the target sum. Industry sources had estimated the Italian pipelines were worth 300 million euros.

E.ON said it would now combine the five companies running that network into one. The German company obtained the pipelines in 2008 when it gave up an attempt to acquire Spanish utility group Endesa.

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