Sweden could sell part of Vattenfall in future -radio

STOCKHOLM Nov 25 (Reuters) - Sweden could consider selling part of wholly owned utility giant Vattenfall [VATN.UL] though not in the near future, Swedish radio quoted the country's prime minister saying on Wednesday.

"We don't envisage relinquishing control, and I don't think there will be any quick sale of this huge company," Prime Minister Fredrik Reinfeldt said.

"However, we believe it would be interesting to look at some form of minority ownership. But it hasn't been an issue for this mandate period. There is reason to come back to this."

Sweden's centre-right government has already undertaken the biggest privatisation programme in the country's history.

Since coming to power in 2006, it has sold part of its stake in telecoms firm TeliaSonera (TLSN.ST), Absolut vodka maker Vin & Sprit (PERP.PA), real estate firm Vasakronan and a chunk of the country's monopoly pharmacy firm Apoteket.

It still owns 20 percent of the Nordic region's biggest bank, Nordea (NDA.ST), and has holdings in over 50 other firms.

Privatisation plans have been held up by the financial crisis of the last year and the government now faces a general election in 2010.

Vattenfall, Europe's fifth biggest electricity producer, has come under heavy criticism in Sweden over the last couple of years over a series of problems at its nuclear reactors in Sweden and Germany.

More recently the company has been in hot water in the Swedish media over a proposal to sell its electricity grid and an agreement with its German subsidiary over liability in the case of a nuclear accident.

Enterprise Minister Maud Olofsson has said that the issues had not been handled well by the company and that the brand had taken a "big blow." [ID:nLG329409]

The government said it had rejected a sale of Sweden's electricity grid. Reinfeldt said that despite its 100 percent ownership of Vattenfall, he did not believe the government should run the company on a day-to-day basis.

"Rather, they should take responsibility for the operations, based on certain underlying targets," he said.

The government is currently reviewing the guidelines it gives Vattenfall for its activities.

((simon.c.johnson@reuters.com; Reuters Messaging: simon.c.johnson.reuters.com@reuters.net; tel: +46 8 700 1045))