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Iberdrola Said to Mull Telecommunications Unit Sale

Iberdrola Said to Weigh Sale of Telecommunications Unit
Iberdrola said in July that net income in the first half dropped 13 percent to 1.5 billion euros, after a reduction in renewable-energy subsidies took full effect. Photographer: Angel Navarrete/Bloomberg

Sept. 3 (Bloomberg) -- Iberdrola SA is weighing the sale of its telecommunications unit, which could fetch Spain’s largest utility more than 300 million euros ($393 million), according to people with knowledge of the matter.

The company, based in Bilbao, Spain, is talking to advisers about options for the business, though no firms have yet been hired and no decision has been taken on whether to sell the business, the people said.

Should Iberdrola decide to sell, private-equity firms Cinven Ltd. and Gala Capital Partners Equity SCR SA are among the firms that may be approached to buy the assets, the people said. Cinven bought Gas Natural SDG SA’s telecommunications unit for 510 million euros in June.

Representatives for Iberdrola, Cinven and Gala Capital declined to comment.

Iberdrola’s telecommunications unit, which includes fiber-optic networks, power-line communications, transmission, data-switching, switchboards and radio, provide services to the group’s businesses in addition to rental agreements with suppliers and customers, according to the company’s website.

The shares rose 0.2 percent to 5.59 euros at 9:07 a.m. in Madrid, taking their gains this year to 21 percent and giving the company a market value of 35.2 billion euros.

Iberdrola said in July that net income in the first half dropped 13 percent to 1.5 billion euros, after a reduction in renewable-energy subsidies took full effect.

To contact the reporters on this story: Manuel Baigorri in London at mbaigorri@bloomberg.net; Kiel Porter in London at kporter17@bloomberg.net

To contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net Elizabeth Fournier, Steve Bailey

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