Iberdrola, Union Fenosa targets of deal -WSJ

NEW YORK, March 21 (Reuters) - A French power company and Spanish construction company are in advanced talks about a $100 billion deal under which they could bid for two of Spain's largest utilities, The Wall Street Journal said on Friday.

Talks are progressing between France's state-owned EDF (EDF.PA: Quote, Profile, Research, Stock Buzz), one of Europe's largest utilities, and Actividades de Construccion y Servicios SA (ACS.MC: Quote, Profile, Research, Stock Buzz), the paper said, citing people familiar with the matter.

The two companies would make simultaneous bids for Iberdrola SA (IBE.MC: Quote, Profile, Research, Stock Buzz), Spain's largest utility by market value, and Union Fenosa (UNF.MC: Quote, Profile, Research, Stock Buzz), the third-largest utility, the Journal said.

ACS currently owns 45 percent of Union Fenosa and controls 13 percent of Iberdrola.

The combined value of the transactions, including debt, would be about $134 billion, not including any premium the buyers might pay, according to the report. It said the deal is far from certain and could take a much different form than the one now being contemplated.

EDF in early February confirmed it had made contact with ACS regarding a possible move against Iberdrola.

Iberdrola last month stepped up its defense against unwanted takeover approaches, asking the Spanish energy watchdog group to restrict the power of ACS. (Reporting by Ransdell Pierson; Editing by Leslie Adler)