Italian government sells 1.7 percent stake in Eni

AP News
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Posted: Sep 13, 2012 2:30 PM
Italian government sells 1.7 percent stake in Eni

MILAN (AP) — The Italian government finance company says it has sold a 1.7 percent stake in the Eni gas and oil company for €1.096 billion ($1.4 billion) over recent weeks.

The Cassa Depositit e Prestiti SpA said Thursday that it sold the shares to help finance its purchase of a nearly 30 percent stake in the Snam natural gas distribution unit as mandated by Premier Mario Monti's technical government.

The spinoff of SNAM from Eni is aimed at increasing competition.

CDP says its stake in Eni is now 27.36 percent — and that it intends to dispose of another 1.6 percent at its discretion to help complete the purchase of the Snam stake.

Snam plans to invest €6.7 billion ($8.8 billion) to develop the gas infrastructure network in Italy.