Spain's Fenosa may pull out of Nicaragua - Ortega

MANAGUA, Nicaragua, May 24 (Reuters) - Spanish power company Union Fenosa (UNF.MC), facing threats of state intervention from Nicaragua's leftist government, has offered to sell its assets back to the state, President Daniel Ortega said on Thursday.

Former Marxist guerrilla Ortega, an ally of leftist Venezuelan President Hugo Chavez, warned in March that the government could "intervene" in Fenosa's local operations if it did not put a stop to frequent blackouts.

"Their most recent proposal is ... to sell it back to the Nicaraguan state," Ortega told a news conference regarding the company's plans for its distribution network.

The government blames Union Fenosa (UNF.MC) for a power crisis that has led to daily blackouts.

Since 2000, Union Fenosa has enjoyed a virtual monopoly in power distribution in Nicaragua, where around 80 percent of electricity is generated from oil.

The government accuses Union Fenosa of not investing enough in the power system, while the company says the government will not let it raise prices in step with higher fuel costs.

No one at Fenosa's offices in Nicaragua was immediately available to confirm it had made the offer.