PARIS (AFX) - Italy's Enel will suspend its plans to launch a hostile takeover bid for Suez, at least until after the Italian April 9 and 10 elections, according to a report in French financial daily, Les Echos, citing sources close to the matter.
The report said that Enel's board will meet today to suspend the bid plans.
The report said that with the elections coming up in Italy, the Italian government, which has a 31 pct stake in Enel, does not want a major political row with the French state, which backed a plan to merge Suez and Gaz de France last month.
The report said the Suez-GDF merger will be finalised in the autumn, giving Enel several months to revive its takeover plans.
In addition, Les Echos quoted a source on the French side saying that the interruption of indirect talks between Enel and the two French utilities was due to their negotiating positions being 'too far apart'.
The talks reportedly were aimed at finding a compromise, whereby Enel would consider renouncing its takeover plans in return for discussions over the cession of certain Suez units, particularly those in Belgium, to Enel.
The French source said Enel was also interested in Suez's Distrigaz unit, as well as its stake in Elia in addition to other assets. paris@afxnews.com lg/jfr COPYRIGHT Copyright AFX News Limited 2005. 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. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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