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UPDATE 1-RWE will not bid for utility Enea -Polish treasury

Published 10/14/2009, 11:58 AM
Updated 10/14/2009, 12:00 PM
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* Polish treasury says RWE will not bid for 67 percent of Enea

* Wants to relaunch the sale before year-end (Adds more detail, RWE comment)

WARSAW, Oct 14 (Reuters) - German utility RWE will not make a binding offer for Polish peer ENEA, the Polish treasury ministry said in a statement on Wednesday, adding it still wanted to relaunch the sale this year.

RWE was the sole bidder interested in acquiring a 67 percent stake in Enea, worth almost 7 billion zlotys ($2.5 billion) based on the current market price, put up for sale by the Polish government. It had been expected to file a final bid on Thursday.

"Following careful analysis, RWE concluded that its potential offer would not match current market expectations," the German utility said in a separate statement.

The news came after Enea said on Monday that France's GDF Suez had asked to take a look at Enea's books.

Earlier this month the treasury told Reuters that Poland was counting on other investors to counter a possible RWE bid.

Sweden's Vattenfall bought a nearly 19 percent stake in Enea during its initial public offering in 2008 for $560 million but decided to pass on the opportunity to grab a controlling stake. (Reporting by Adrian Krajewski; Editing by Rupert Winchester)

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