A2A/Iren merger would have to be gradual - Milan mayor
A merger between Iren and A2A, the listed Italian utilities, is a possibility but would only happen gradually, Il Sole 24 Ore reported.
The Italian-language daily cited Giuliano Pisapia, the mayor of the city of Milan, one of the controlling shareholders of A2A. Pisapia said it would be necessary to properly evaluate the transaction and the possible savings.
Both Pisapia and the mayor of Brescia have previously gone on record as saying that mergers in the area covered by A2A are necessary.
Milan and Brescia currently control 55% of A2A, while the cities of Turin and Genoa control 59% of Iren.
The two companies could implement a EUR 1bn capital increase as part of any merger operation, according to an unsourced report published earlier this month. This capital increase, which would also be open to the market, would have a sustainable level of debt in relation to EBITDA.
Source Il Sole 24 Ore Radiocor