Enel Buys Wind Stake from Orange

The Italian electricity company Enel has taken control of the Italian GSM network, Wind after it paid $1.4 billion for a 26.6 percent stake from Orange. Enel now owns 100% of Wind. Enel now says that it is looking to sell Wind sometime after next year, having dropped plans for an IPO.

Paolo Scaroni, Chief Executive, commented: "Wind has continued to grow strongly in 2002. The agreement with France Telecom represents a further step in our stated strategy of developing Wind as a financial investment. By achieving 100% ownership, we will have full control over the industrial plan and we will increase our options to capitalise on our investment as soon as Wind becomes financially independent."

Deutsche Telekom sold its 24.5% stake in Wind to Enel and France Telecom in July 2000, which valued the company at around US$11 billion. The price paid by Enel to Orange will see Wind's valuation crash to just US$5 billion.

France Telecom also gives up its option to increase its stake to 44%. The transaction also provides for the transfer to Enel of France Telecom's US$175 million loan to Wind"

Posted to the site on 24th March 2003