A planned merger between Gaz de France and utility Suez has been on the cards since June and was not a French protectionist move against Italy's Enel, the head of Gaz de France has said in a newspaper interview.
Enel, Italy's largest utility, said last week it could bid for Suez, prompting the French group to announce a government-backed tie-up with Gaz de France and triggering a European row over cross-border takeovers.
"The idea of a Suez-GDF link-up is an old idea, which became concrete from last June. [Suez CEO Gerard] Mestrallet and I told ourselves we could do something together," CEO Jean-Francois Cirelli said in an interview published in today's edition of Italy's Il Sole 24 Ore.
"We prepared the project, keeping GDF's controlling shareholder, the state, up to date with developments, and then in January we told the government that the "Cristal" plan was in its final phase."
In a memo sent to the European Union yesterday, Enel said it began preparing its plan last November with France's Veolia, adding the French government was informed in January.
But Mr Cirelli said the two French utilities had already been expecting a response from the government on Gaz de France's privatisation when Enel said it was interested in Suez.
Enel is now assessing its options after having formally outlined its case to the European Commission in Brussels against what Italy says is a protectionist merger.