dj gas natural in race for babcocks assets

DJ Gas Natural In Race For Babcock's Assets, Fenosa Out -Report09072008 1218PM AEST DOW JONES NEWSWIRES

Spanish gas distributor Gas Natural SDG SA GAS.MC has entered the race to buy Australian Babcock & Brown Wind Partnerss BBW.AU wind assets, reports Expansion in its Wednesday Internet edition, citing sector sources.

Meanwhile, Union Fenosa SA UNF.MC has decided to drop out of the auction as it shifts its attention to Australia, where it will develop 800 megawatt in wind power capacity, as announced Tuesday, the paper adds.

Iberdrola SA IBE.MC is also bidding for Babcock's assets.

Babcock & Brown is expected to sell some of its wind assets located in Spain, Portugal, France, Italy, Greece and Germany in coming months. The assets have a wind power capacity of some 3,000 megawatts and are valued at between EUR3.5 billion and EUR4 billion, according to analysts cited by the paper.