Vattenfall may shed European ops - report

Nov 29, 2013 - Swedish state-owned utility Vattenfall is mulling over the sale of its business in Continental Europe and the UK in 2014, Reuters said Thursday, citing sources in the know.

According to four people familiar with the matter, the company plans to focus on its domestic operations and cut debt. Vattenfall operates conventional power plants, including coal, nuclear and natural gas, as well as biomass, hydropower and wind parks.

Vattenfall's advisers have carried out a strategic review of the assets and are expected to start negotiations with potential buyers from next year, the report says. A spokesman of the company has denied a possible sale, Reuters added.

The Swedish utility is burdened with SEK 158 billion (USD 24.1bn/EUR 17.7bn) in debt from its European acquisitions. In July it announced plans to separate its Nordic operations from the Continental Europe/UK business in a move to adapt to the changing energy market in Europe. The split-up, which will need government approval, will probably have little progress before the general elections in Sweden in September, according to Reuters' sources.

(SEK 1.0 = USD 0.153/EUR 0.112)

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