Transmission holding slimdown for Iberian players

Energias de Portugal (EdP) has sold its entire 3% stake in Spanish power grid operator Red Electrica for a total of close to €76.5 million.

UBS managed the sale and placed 4.06 million shares with institutional investors at €18.84 per share.

More Red shares are due to come onto the market in coming months as power companies have to reduce their interest in group to 1% each by 2008, according to government ruling.

Endesa, Iberdrola and Union Fenosa will also have to cut their stakes by a similar amount. Furthermore, the state plans to sell 18.5% in Red this year as it cuts its own 28.5% stake in a public offering.