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4 January 2007 - Gas Natural, having been barred from bidding for compatriot Endesa by the Spanish courts, has begun consolidation talks with Portuguese utility Energias de Portugal (EDP), according to a local media report.
Spain's elConfidencial.com quoted an unnamed source close to the Catalan gas group who claims the negotiations were progressing well but a definitive agreement was still a long way off. A spokeswoman for Gas Natural played down the report, noting that it appeared to be a rehash of previous, similar reports.
Energy analysts observed that such a tie-up would be a last resort for Gas Natural, as it battles to overturn the Spanish Supreme Court's decision to block its bid for Endesa. The Supreme Court is scheduled to meet on 10 January to study whether the injunction should be lifted.
However, as analysts noted, this appears increasingly likely and expect Natural Gas to be forced to look abroad as domestic opportunities to grow through acquisitions are dwindling. Another potential target, Iberdola, is engaged with merger talks with UK utility Scottish Power.
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