Reuters logo
UPDATE 1-Spain's REE shares jump on reported China bid
July 2, 2012 / 3:28 PM / 5 years ago

UPDATE 1-Spain's REE shares jump on reported China bid

(Recasts, adds share price, background)

MADRID, July 2 (Reuters) - Shares in power grid operator Red Electrica jumped by more than 5 percent on Monday on a media report of a takeover interest from China.

Industry Minister Jose Manuel Soria said he was unaware of any Chinese interest in the company, whose shares were up 5.25 percent at 1524 GMT.

The report in El Mundo newspaper said that Chinese utilities company State Grid had approached both REE and gas company Enagas.

Spain’s government holds a 20 percent stake in REE, and 5 percent in Enagas, worth a little over 1 billion euros ($1.27 billion) as of last Friday.

Spain plans to sell stakes in public companies this year to help stabilise its public accounts and meet a tough deficit forecast but it has repeatedly said it would retain control of strategic assets such as energy.

China already holds a 25 percent stake in Portuguese power grid operator REN, which it agreed to buy earlier this year as part of Portugal’s privatisation drive under an international bailout of its economy.

Soria also said that Spanish wind turbine manufacturer Gamesa, and the Chinese government have agreed to jointly develop a wind power project. He gave no further details of the deal during a radio interview. ($1 = 0.7880 euros) (Reporting By Robert Hetz, Writing by Nigel Davies; Editing by Julien Toyer and David Cowell)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below