Italy Regulator Asks EDF, A2A For More Edison Deal Information

Italian stock market regulator Consob confirmed Wednesday it has asked local utility A2A SpA (A2A.MI) and Electricite de France SA (EDF.FR) for more information about a Tuesday agreement ending their long-running spat over control of Edison SpA (EDN.MI), adding it expects a statement in the coming days.

"We have asked EDF, Edison and the Italian shareholders to give the market more information about the deal," said a person at Consob's press office.

Italian power utility Edison could not be immediately reached for comment.

On Tuesday, EDF and municipal utility A2A announced preliminary plans for the French company to increase its stake as part of the long-awaited takeover of the EUR4.4 billion company. A2A-controlled holding company, Delmi, would garner a 70% stake in local power generator Edipower, in which Edison has a 50% stake, and which owns nine electricity plants in Italy.

Consob is seeking clarification on four issues. The first regards what criteria EDF and Edison used to set the price of EUR0.84 a share for a deal which will see EDF increase its stake in Edison to 80.7% from today's 50%.

The second is when EDF will re-submit the paperwork to Consob asking it for an opinion on the price of an upcoming bid to buy out Edison's minority shareholders. EDF has to re-submit the request since the agreement announced Tuesday is different from the one reached by the two parties earlier this fall.

Thirdly, Consob has requested further information on an agreement for Edison to supply natural gas to Edipower in a six-year contract. The regulator wants to know what benchmark "market price" the companies used when agreeing the contract.

Finally, Consob is seeking more information on how EDF and Edison are complying with specific procedures governing Italian transactions among themselves and other parties considering the close ties that exist in the Edison shareholding.

-By Jennifer Clark, Dow Jones Newswires; 39 02 58 21 9904; [e-mail]

(Liam Moloney contributed in Rome.)