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E.ON high-voltage network sale to start in spring-report

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MILAN | Sun Nov 23, 2008 4:32pm IST

MILAN Nov 23 (Reuters) - The sale process for German utility E.ON's (EONGn.DE) high-voltage power networks will begin in the spring and "many" investors are interested, CEO Wulf Bernotat told an Italian newspaper on Sunday.

In an interview with Corriere della Sera, Bernotat also said he had spoken with the CEO of Italian power company Enel (ENEI.MI) about possible common project ideas.

"The sale process will begin in the spring and there are many strategic and financial investors that are interested," Bernotat said. "I would not like to name names now but there are important Italian candidates among these."

E.ON and Enel signed a memorandum of understanding in June with Romania's Termoelectrica to build a coal-fired plant.

"I spoke with Enel CEO Fulvio Conti on various common interesting themes...We could develop common plans in Russia for the development of deregulation and privatisation of the energy market, where we are already present with investments" he said.

He reiterated E.ON's interest in a role in developing nuclear power in Italy if there is a return to nuclear energy.

"(At an Italo-German summit in Trieste), I underlined our interest to contribute ... with the construction of nuclear plants in Italy, maybe in partnership with Enel. I had the feeling Conti would view such a cooperation with interest."

Bernotat said E.ON, which completed a takeover of Spanish peer's Endesa's Italian assets in June, wanted to expand its presence in the Italian power market.

"We would like to contribute to bettering Italy's energy infrastructure, for example with the construction of a regassification terminal for liquid gas in the gulf of Trieste and with the (completion) of the Tauerngas pipeline which will carry gas to Italy from Russia through central Europe," he said.

On the Baltic Sea gas pipeline project Nord Stream, hit by fears the financial crisis could dent its feasibility, he said: "I am convinced the Nord Stream pipeline will be realised." (Editing by David Cowell)

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