France Telecom Denies Interest In Acquiring Enel's Wind

MILAN -(Dow Jones)- France Telecom SA (FTE) is not interested in acquiring Enel SpA's (EN) telecommunications unit, Wind SpA (WIF.YY), a spokesman for the French group said Wednesday.

The statement comes after Italian daily Finanza & Mercati reported earlier in the day that France's incumbent telecoms operator was planning a EUR13.5 billion bid for unprofitable Wind in a drive to expand into Italy.

Enel, Europe's largest listed power company, is seeking to sell Wind as part of a strategy to focus on core operations.

"France Telecom formally denies that it intends to participate in the ongoing process concerning Wind," a spokesman said by email.

Enel holds Wind on its books for EUR6 billion, and the telecoms group owes another EUR6.7 billion in debt, making the price tag for Italy's third-largest telecommunications operator close to EUR13 billion.

Private equity firm Blackstone Group (BGP.XX) and, separately, a consortium known as the Weather Fund, are expected to present their own bids for Wind by Thursday at the latest, sources close to the two groups have told Dow Jones Newswires.

France Telecom owned a minority stake in Wind through mobile unit Orange until 2003. The company sold the stake in order to restructure itself after having suffered record losses in 2002. It is currently pursuing a strategy of debt containment and organic growth in France.

-By Brian Lagrotteria, Dow Jones Newswires; +33-01-40-17-17-55; brian.lagrotteria@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 19th January 2005