* Says in talks with market participants on Turkey business
* Options range from sale of stake to boosting exposure
* E.ON declines comment
* Verbund shares rose 1.8 pct, lead utilities sector
(Adds quotes and background)
FRANKFURT/VIENNA, Oct 12 Austrian energy group
Verbund AG is in talks regarding its business in
Turkey and is exploring a range of options from scaling back to
expanding, it said on Friday.
Sources close to the situation had told Reuters in August
that Germany's biggest power company E.ON AG was in
talks to expand in Turkey by buying a stake in energy firm
Enerjisa from Verbund.
Verbund, which has been divesting stakes in non-core
businesses to streamline its portfolio, said in a statement it
was in talks with other companies about the business in Turkey.
It said the object of these discussions was to assess
several options, ranging from the sale of a shareholding to the
acquisition of further shareholdings - or the further
development of an existing investment.
It gave no more details.
One source had said in August that there had been talks
between E.ON and Verbund about an asset swap, under which E.ON
could give up assets in hydro-power stations to Verbund in
return for its 50 percent stake in Enerjisa.
Enerjisa said last year it had dropped a plan to buy a power
distribution network in Istanbul after Verbund backed away from
E.ON - which had previously said it was talking to potential
partners in Turkey - declined comment.
Verbund shares rose 1.8 percent to 17.29 euros by 1120 GMT,
making it the leading gainer in the STOXX Europe 300 utilities
index, which eased 0.2 percent.
(Reporting by Christoph Steitz, Tom Kaeckenhoff und Angelika
Gruber; Editing by David Holmes)