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ENEL drops IPSE buyout


ENEL drops IPSE buyout


Italy’s state-controlled electrical and telecoms giant ENEL has abandoned plans to buy 3-G phone venture IPSE.

ENEL is Italy’s leading power utility and owns the country’s second largest fixed-line telephone network WIND, but was unhappy at several aspects of the deal to purchase failed IPSE, which is led by Spain’s Telefonica. It still owes the Italian state over 800 million euros for the 3-G licence it won at auction in 2000, which cost it over three billion. It never started services. ENEL wants to quit phones to concentrate on oil and gas, and wants to sell off WIND, but it seems buying IPSE would have made the selloff more complicated.Within the next 20 months ENEL is expected to offer WIND stock for public ownership if it dfoes not find a buyer. ENEL’s stock has climbed 41 percent this year, making the firm worth over 44 billion euros.
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