German utility E.ON AG (EOAN.XE) is in talks with Austria 's Verbund AG (VER.VI) to buy a stake in Turkish electricity producer Enerjisa, Reuters reported Friday, citing four sources close to the deal.

Enerjisa is a joint venture of Verbund and Sabanci Holding (SAHOL.IS).

One source said a deal could include a swap of E.ON assets, possibly related to hydro power stations.

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