Higher bid needed for Enel’s Interpower

5 November 2002 – The bid tabled by a consortium led by Rome utility Acea and Belgian’s Electrabel for Enel’s last generating unit Interpower will need to be raised if the sell-off is not to be deferred, a financial source is reported as saying Monday.

Interpower, which owns 2600 MW of generating capacity, is being sold by Enel in order to meet a legal requirement to diminish its generating capacity by 15 000 MW by the end of the year. The multi-utility is however permitted to postpone the sale by a year if the offer is not deemed appropriate.

Market sources have said the offer placed by Acea/Electrabel’s consortium came in between €850m and €900m which is below the €1bn reported to be the minimum price.

If Acea/Electrabel were to up its offer to €1.0bn – and sources close to the deal say it is highly probable – Interpower would still be the cheapest per-megawatt hour genco Enel has sold so far.

In March Enel sold its 7000 MW Eurogen generating company for €3.7bn to a consortium backed by automaker Fiat SpA and French electricity firm Electricité de France.

The first unit on the block, the 5400 MW Elettrogen, was sold last year to Spain’s Endesa for €2.63bn

The bidding group for Interpower also includes the Energia group, which comprises 75 per cent of Cir and 25 per cent Verbund of Austria, Seabo Bologna, Amga Genova, MPS and BNL.

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