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No state nod kills stake plan

CHINA'S Guangxi Guidong Electric Power Co said its parent has decided not to sell a 29-percent stake in the listed unit to Spanish utility Iberdrola SA after failing to obtain government approval.

Bilbao-based Iberdrola signed an agreement with Guidong's state-owned parent, Hezhou City Electric Power Co, in June 2006 to buy the stake for 218 million yuan (US$31.9 million), or 4.80 yuan a share.

But the two parties have decided to cancel the deal after they failed to secure government approval, Guidong, a regional hydropower generating company in southern Guangxi Zhuang Autonomous Region, said in a filing to the Shanghai Stock Exchange yesterday without elaborating.

A Guidong official, who refused to be identified, said the State-owned Assets Supervision and Administration Commission wouldn't approve the transaction as the price was too low, while Iberdrola had been unwilling to raise its offer.


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