Enel's Main Option For Wind Remains IPO -Source

The source was speaking amid speculation that Enel and France Telecom (FTE) are in talks for an all-paper deal which would see the Italian power company selling wholly-owned Wind in exchange for a minority stake in the French telecommunications giant.

People familiar with the matter said in November that state-controlled Enel and France Telecom were discussing such deal, but Italian Communications Minister Maurizio Gasparri said at the time that he didn't believe it would be clinched.

Separately, another source said earlier this week that Scaroni has contacted six private equity funds to propose they buy shares in Wind ahead of the flotation.

The person declined to name the funds but said U.S.-based Blackstone Group (BGP.XX) is among the six.

Any deal with one or more funds would help Enel in setting a price-range for the IPO and therefore would be fully-compatible with a bourse listing.

Enel last month rejected an offer from an investor group led by Italian businessman Cesare Romiti, which valued Wind at EUR12 billion but foresaw an initial investment of only EUR2 billion.

The group said at the time it would make a new offer for Wind, probably around Jan. 20.

-By Vittorio Alessio, Dow Jones Newswires; +39 06 678 2543; vittorio.alessio@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 14th January 2005