GDF Suez CEO Hopes To Reach New JV Accord With Acea By End Year

GDF Suez SA (GSZ.MI) hopes to reach an accord with Italy's Acea SpA (ACE.MI) to expand their joint venture by the end of the year, although no deadline is set, said Chief Executive Gerard Mestrallet of the French energy company Wednesday.

"We would like [to reach a deal] by the end the year, but there is no legal obligation to do so," said the CEO at a press conference in the capital on the joining of GDF Suez's companies Cofathec Servizi and Elyo Italia under the energy services brand Cofely.

Relations between the two companies have been strained since last year when the new Rome Mayor Gianni Alemanno expressed concern over the dominant role GDF Suez would have in a bigger alliance that would include natural gas. GDF Suez owns a 9.9% stake in Acea and the companies have an ongoing electricity venture. Rome City Hall owns a 51% stake in Acea.

The current talks between GDF Suez and Acea center on what to include in a possible expanded joint venture, said Mestrallet. The French company wants to include gas activities in the venture, but it is up to Acea to decide on the scope, he added.

GDF Suez is ready to go forward with "Acea partially or wholly," the CEO said.

"I am optimistic" an accord will be reached, Mestrallet told reporters.

Acea Web site: www.aceaspa.it

-By Liam Moloney, Dow Jones Newswires; [phone]; [e-mail]