UPDATE 2-Iride sees tie-up this yr, to invest 1.3 bln euros

(Adds chairman comments in paragraphs 4-7)

By Giancarlo Navach

MILAN, May 6 (Reuters) - Italian regional utility Iride (IRD.MI: Quote, Profile, Research) said on Tuesday it still expected a tie-up with other utilities this year as it planned to invest 1.3 billion euros ($2.01 billion) under a five-year business plan.

"I believe that 2008 will be the year in which Iride carries out a tie-up," Chief Executive Roberto Garbati told reporters at the presentation of the utility's 2008-2012 plan.

Iride has been in talks for months with Rome's Acea (ACE.MI: Quote, Profile, Research) and peers Hera HRA.MI and Enia (EN.MI: Quote, Profile, Research) in northern Italy.

But its chairman, Roberto Bazzano, said a tie-up of the four utilities was looking increasingly improbable.

"A merger of four is difficult," he told reporters at a presentation of its 2008-2012 plan.

"It seems the number of participants can be reduced without causing problems for anyone and we could head towards something more concrete," he said.

"It is unlikely the Romans will take part in the next meeting because they are also interested in the developments in the merger between Gaz de France GAZ.PA and Suez (LYOE.PA: Quote, Profile, Research)."