Romanian Electrica May Enter Arbitration With Enel, ZF Reports

Electrica SA, a Romanian state-owned power distributor, may enter arbitration with Enel SpA over the sale of a minority stake in one of Electrica’s former units to the Italian utility, Enel, Ziarul Financiar reported.

Electrica, which seeks to raise about 500 million euros ($668 million) from the sale of a 13.57 percent stake in Enel’s unit, may ask the Paris-based Arbitration Court to resolve a dispute after the Italian company challenged the formula to determine the stake sale price, the Bucharest-based newspaper said, citing unidentified people with knowledge of the matter.

The sale of Electrica’s minority stake is part of an option from a 2008 contract when Enel bought a majority stake in the Romanian energy company, known as Electrica Muntenia Sud.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE