Chairman Piero Gnudi of Enel SpA (ENEL.MI) said Thursday the Italian utility wasn't in talks with Acciona SA (ANA.MC) to buy the company's 25% stake in Endesa SA (ELE.MC) so as to run the Spanish utility alone.
"We aren't negotiating (with Acciona)," said Gnudi in Rome. He said the two companies have continuous contact in their joint ownership of Endesa but the issue hasn't been discussed.
Enel owns 67% of Endesa following last year's takeover. As part of the offer to win Acciona over in the Endesa battle, Enel gave the Spanish company a put option that would allow Acciona to force it to buy its 25% stake from March 2010. Analysts value the option at about EUR11 billion.
Gnudi also said Enel is "indifferent" on whether to buy the stake before 2010 or waiting until that date.
Gnudi added that since the start of the Endesa takeover, financial markets have expected Enel to eventually buyout Acciona and have factored in the extra debt that this would mean.
Enel's net debt was EUR51.4 billion Sept. 30 and has said it forecasts it to drop to less than EUR50 billion by the end of the year.
Enel's net debt in 2010 is estimated to be at about EUR55 billion should Acciona exercise the option that year, Banca Leonardo wrote in a note to clients Wednesday.
Enel aims to reach a total EUR5 billion through the sale of a minority stake in renewable company Enel Green Power stake and via the sale of other assets, such as its natural gas grid and the high-voltage power lines in Italy.
According to Thursday's edition of financial daily Il Sole 24 Ore, which cited Spanish sources, Enel and Acciona could sign an agreement on the 25% put option the latter has on Endesa by Christmas.
Separately, a person familiar with the matter, who asked not to be identified, said that if Acciona wants to speed up the process then Enel could examine an offer for an early exit.