CORRECTED - UPDATE 2-Slovakia could re-nationalise Russia-EU gas pipeline

(corrects currency conversion in paragraph six)

By Martin Santa

BRATISLAVA, Sept 5 (Reuters) - Slovakia's prime minister said on Friday his government could re-nationalise the main Russia-EU gas pipeline from its Western shareholders, his latest salvo against private firms ahead of euro zone entry on Jan. 1.

Fico came to power in 2006 on a welfare platform including a pledge to better protect workers and stop utility price hikes -- a major concern among many in the ex-communist country who fear their wallets will be pinched when Slovakia adopts the euro.

He has since extended that to a threat to expropriate utilities if they try to overcharge Slovaks and jail retailers who may take advantage with price hikes when the European Union newcomer swaps its crowns for the single currency.

On Friday, Fico told shareholders of gas pipeline operator and domestic distributor SPP, E.ON Ruhrgas (EONGn.DE) and GDF Suez SA (GSZ.PA), he would buy their 49 percent controlling stake back if they were unhappy with profits made since its 2002 sale.

"The government is ready to take SPP back under state control... We will pay the purchase price," Fico told a news conference.

He added SPP made 16.7 billion crowns ($780 million) in profit in 2007.

"If you don't like to do business here go and do business somewhere else," he said.

E.ON and GDF were not immediately available for comment.

Analysts doubted whether Fico would actually make good on his offer but expressed surprise at his comments and said they were more reminiscent of Venezuelan President Hugo Chavez than a European leader who has said he would uphold EU values.

"This is Chavez-like populism and there's economic xenophobia and anti-capitalism sentiment behind it," said Grigorij Meseznikov, head of the Institute for Public Affairs.

"If Fico actually does what he says he would do, it could hurt Slovakia's credibility."

BATTLE WITH UTILITIES

In what was one of the region's biggest privatisation of its time, German E.ON and GDF bought a 49 percent stake with management rights in SPP for 130 billion Slovak crowns ($6.14 billion), or $2.7 billion in 2002 exchage terms.