(Updating with Zuccoli comments on Edison, buyback, nuclear power)
MILAN (Thomson Financial) - AEM SpA chairman Giuliano Zuccoli said all options are open with regard to plans to shorten the ownership chain at Edison SpA but added AEM is not ready to pay significant amounts of cash to achieve the goal.
'We could offer AEM shares for Delmi shares or part shares and part cash, but I think it unlikely we will spend significant amounts of cash,' Zuccoli said, in a conference call with analysts.
Edison is 63.3 pct controlled by Transalpina di Energia, which is in turn 50 pct controlled by the holding company Delmi and 50 pct by France's EDF.
In Delmi, AEM holds 51 pct while Enia has 15 pct. Dolomiti Energia and Sel SpA each have 10 pct.
Zuccoli said that no talks have begun between Dolomiti Energia and Sel as regards their stakes in Delmi.
Dolomiti Energia has a put option allowing it to sell, under certain conditions, 50 pct of its Delmi stake while Sel has a put option to sell 85 pct of its stake.
AEM said the two Delmi stakes covered by the put options have a value of 264 mln eur.
Zuccoli, who is also chairman of Edison, said corporate governance relations with EDF in Edison are good and that both groups see the need to make the company more efficient.
'Edison must stop building power stations in Italy and explore abroad,' he said.
Asked about speculation that Iride SpA could tie up with AEM and ASM Brescia, Zuccoli said Iride has merger talks open with other utilities.
'In the complex world of local utilities we need to go step by step, there can be no big bang. We first need to complete our merger with ASM,' he said.
AEM is slated to merge with ASM later this year. The merger deed is expected around Dec 22 while the new company is expected to open its doors officially on Jan 1 next year.
Zuccoli confirmed that the new merged entity's business plan will be presented at the end of October.
Hera SpA has mandated its management to talk with Iride and Acea SpA about possible mergers.
Zuccoli said the buy back programme at AEM is ongoing. The shares bought back will be used for its merger and alliance strategy, he said.
Asked about plans for nuclear power development, Zuccoli said Edison will soon conduct a feasibility study for possible sites.
A referendum in 1987 voted against expansion of Italy's nuclear power industry. A moratorium on the construction of new plants, originally in effect from 1987 until 1993, has since been extended indefinitely. stephen.jewkes@thomson.com sj/dca/sj/jfr COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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