Utility giants to start battle for Distrigas -sources

LONDON, March 14 (Reuters) - European utility giants are set to start fighting it out this month for Distrigas (DISTy.BR: Quote, Profile, Research), the Belgian gas distributor being sold by France's Suez (LYOE.PA: Quote, Profile, Research), sources familiar with the matter said on Friday.

Suez is taking bids from 7 or 8 companies in coming weeks for its 57 percent stake in the the $1 billion business as it hopes to present a 3-company shortlist to the European Commission at the end of March, said the sources.

France's EDF (EDF.PA: Quote, Profile, Research), Germany's E.ON EONG.DE, Spain's Iberdrola (IBE.MC: Quote, Profile, Research), Italy's Eni (ENI.MI: Quote, Profile, Research) and the UK's Centrica (CNA.L: Quote, Profile, Research) are among companies planning to bid, the sources said.

The sources said that while they are interested and plan to bid, many companies are put off by Suez's preference for an asset swap over a straight sale.

Suez agreed to sell off its Distrigas stake to meet European Union competition concerns about its plans for a merger with Gaz de France GAZ.PA.

Centrica, Eni and EDF have said they plan to bid for the company.

Iberdrola and Suez declined to comment.

(Additional reporting by Carlos Ruano)

(Reporting by Mathieu Robbins; Editing by Rory Channing)