UPDATE 1-A2A dividend at risk unless Alpiq stake sold-source - News

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UPDATE 1-A2A dividend at risk unless Alpiq stake sold-source

By: AFX | 09 Nov 2009 | 12:16 PM ET

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MILAN, Nov 9 (Reuters) - A2A's 2009 dividend is at risk unless the Italian regional utility manages to sell its 5.1 percent stake in Swiss power company Alpiq before year-end, a source close to the matter said on Monday. The cities of Milan and Brescia, which each own 27.5 percent of A2A, received dividends of around 80 million euros ($120 million) each in 2008.

Recent outlays have raised concern the dividend in 2009 could be at risk. In October, A2A paid 200 million euros to settle a long-running dispute over former tax breaks the European Union has since said amount to state aid. In September, the company acquired a 43.7 percent stake in Montenegro power company EPCG for an overall sum of around 430 million euros. "Alpiq is the most significant disposal (A2A has tabled) and a solution has to be found before the year's results are closed if the dividend is to be guaranteed," the source said. Last February, the chairman of A2A's management board Giuliano Zuccoli said that the Alpiq stake could be one of the non-strategic assets the group could sell in 2013. The book value of the stake in Alpiq, which in turn owns 5 percent of A2A, is 505.5 million euros. Alpiq has a market capitalisation of $12.6 billion making a 5.1 percent stake worth about $640 million. A2A shares closed up 1.04 percent at 1.26 euros while the DJ Utilities index was up 1.67 percent. (Reporting by Giancarlo Navach; Editing by David Cowell) ($1 = 0.6678 euro) Keywords: A2A DIVIDEND/ (stephen.jewkes@thomsonreuters.com; +39 02 6612 9695; Reuters Messaging: stephen.jewkes@reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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