(Repeats with new Reuters story code)
* E.ON talks to TenneT, group of financial investors-sources
* Group has Deutsche Bank, Goldman Sachs, Allianz-sources
* E.ON may sell German power grid as early as Monday-source
* Bids value grid at about 1 bln eur-sources
* Shares drop as much as 1.4 percent
(Adds background, detail)
By Peter Dinkloh and Tom Kaeckenhoff
FRANKFURT, Nov 6 Germany's E.ON AG (EONGn.DE),
the world's largest utility, is set to sell its German
long-distance power grid, four people with knowledge of the
matter said, ending years of wrangling with the European
E.ON is in advanced talks with Dutch grid operator TenneT as
well as a consortium of Goldman Sachs (GS.N), Allianz (ALVG.DE)
and Deutsche Bank (DBKGn.DE) about the sale of its 11,000
kilometres of high-voltage electricity grid, the sources told
Reuters on Friday.
E.ON had committed itself to selling the power grid in
February last year, breaking away a united front of German
utilities against plans of the EU's executive arm to force
German utilities to do the same.
A sale would result in the first German long-distance power
grid -- vital to transport power to distributors and industrial
users -- being operated separately from power stations in the
region of the grid.
The bids value the grid, which runs from the Danish border
in the north to the Austrian border in the south, at about 1
billion euros ($1.5 billion), the sources said.
One of the people involved in the process said that the sale
might be decided as early as Monday.
All of the parties involved declined to comment.
The sale of the grid most will likely comes almost
simultaneously as the sale of Vattenfall's [VATN.UL] power grid
in eastern Germany, which borders E.ON's grid.
The consortium of Goldman Sachs, Allianz and Deutsche Bank
is also in final talks to buy Vattenfall's power grid, people
with knowledge of the transaction have told Reuters.
The grid also borders TenneT's grid in the northwest,
enabling both potential buyers to combine the grids and cut
E.ON shares dropped as much as 1.4 percent after the news
and were down 0.2 percent at 26.23 euros at 1449 GMT, while the
German benchmark index DAX .GDAXI was up 0.1 percent.
(Additional reporting by Philipp Halstrick in Frankfurt;
editing by Karen Foster)