Iberdrola Denies Report Of Exclusive Deal With Ashmore Energy

Spanish power utility Iberdrola SA (IBE.MC) Wednesday denied a media report that it is in exclusive talks to acquire assets from Ashmore Energy International, and said it has no plans to buy the U.S.-based company.

Iberdrola's statement comes after Brazilian newspaper Valor Online reported that Iberdrola, Spain's largest power company by market value, has an exclusivity deal to study the purchase of a portfolio of AEI assets worth $8 billion, including Brazil's power company Elektro.

An Iberdrola spokesman, however, declined to comment on whether Iberdrola is looking to buy any of the assets. Spokespeople for AEI were not immediately available.

Last year, Brazilian media reported that Iberdrola and three Brazilian utilities--Companhia Energetica de Minas Gerais or Cemig (CIG, CMIG4.BR); CPFL Energia SA (CPL, CPFE3.BR), Brazil's biggest non-state utility; and AES Corp.'s (AES) Brazilian unit--were bidding to buy AEI's assets in Brazil, worth as much as 7 billion Brazilian reais ($4.24 billion).

Valor Online said Iberdrola's exclusivity deal would give the company 15 days to decide whether it will go ahead with an offer for the AEI assets, which also include power and gas operations elsewhere in Latin America, China and Eastern Europe.

-By David Roman and Juan Montes, Dow Jones Newswires, +34 91 395 8127; david.roman@dowjones.com

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