UPDATE 2-A2A wins power company auction with lower bid

* A2A to get 18.3 pct stake with 8.4 eur/shr bid

* Trumps 11.1 eur/shr bid from Greece's PPC

* PPC bid rejected as "incompatible" with tender

* PPC has 8 days to appeal decision (Adds new Lazovic comment, Greek response)

PODGORICA, July 30 (Reuters) - A top Montenegrin official said on Thursday that the country had accepted an offer from Italian utility A2A for a minority stake in power monopoly EPCG, beating a higher offer from Greece's PPC.

The PPC offer was deemed "incompatible" with the rules of the tender, a day after the company, bidding with GoldenEnergy One Holdings, a unit of the Greek shipping group Restis, said it had no conditions attached to its offer.

Deputy Prime Minister Vujica Lazovic told TV Vijesti that in their letter to the tender commission "the Greeks have not said that they would sign all the transaction documents required."

PPC had offered 11.1 euros per share for an 18.3 percent stake in EPCG, or roughly 127 million euros ($181.3 million), against the 8.4 euros per share bid by A2A.

PPC will have eight days to lodge an appeal before the Privatisation Council confirms the decision, Lazovic told reporters after a three-hour government session which followed the meeting of the tender commission.

A source close to the procedure told Reuters that the PPC-Golden Energy One Holdings bidders had not been formally informed of the decision yet and had not decided whether to appeal.

On Tuesday, Montenegro gave PPC a Wednesday deadline to drop all conditions attached to its bid. Senior sources familiar with the tender said PPC had wanted an independent pricing policy and did not want to buy the stake its Italian rival bought in May.

A2A got a seat on EPCG's managing board in June, a month after buying a 15 percent stake with several block trade transactions on the Montenegro bourse from local institutional stakeholders for 122.7 million euros, or 7.1 euros per share.

In June, Italian investors pledged to invest up to 5 billion euros in energy projects and infrastructure in Montenegro, including the construction of a 100-kilometre underwater power cable between the two countries with an initial capacity of 1,000 MW. Montenegro will get a 20-percent share in the cable. (Reporting by Petar Komnenic in Podgorica and George Georgiopoulos in Athens; Writing by Gordana Filipovic; Editing by Simon Jessop and Rupert Winchester)