UPDATE 1-Italian utilities to continue tie-up talks-source

(Adds source close to Acea)

MILAN, April 18 (Reuters) - A group of Italian regional utilities will continue discussing possible mergers after a meeting on Friday yielded no conclusive results, a source close to the talks told Reuters. The source said executives from Bologna-based Hera (HRA.MI: Quote, Profile, Research) discussed with peers Enia (EN.MI: Quote, Profile, Research) and Iride (IRD.MI: Quote, Profile, Research) a proposal to merge, which would also include Rome-based Acea (ACE.MI: Quote, Profile, Research).

The deal would create Italy's biggest multiservice utility.

Acea had said on Friday its executives would not take part in the meeting.

The source said Acea missed the meeting because it wanted to wait for the result of a ballot vote to elect Rome's next mayor, as the city is the controlling shareholder of the municipal utility.

A source close to Acea said the utility preferred to have one-to-one meetings and that this view had been expressed to Hera's chairman after a meeting last month. The four utilities have been prompted to look for partners by AEM Milano's takeover of ASM Brescia last year, which created A2A (A2.MI: Quote, Profile, Research), Italy's biggest regional utility. (Reporting by Giancarlo Navach; Additional reporting by Stefano Bernabei; Editing by David Holmes)