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INTERVIEW-UPDATE 2-Libya eyes investing in Enel, Impregilo

Published 06/11/2009, 10:03 AM
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* Libya eyes investing in Italian power, infrastructure cos

* Says Enel, Impregilo among potential investments

* Impregilo shares up 2 percent, Enel shares up 0.5 percent

* Libya says Telecom Italia welcome in Libyan projects

(Adds background, shares)

By Deepa Babington

ROME, June 11 (Reuters) - Libya is considering investing in Italian electricity and infrastructure companies, including power producer Enel and builder Impregilo, the head of its $65 billion sovereign wealth fund said.

Libya has been snapping up stakes in major Italian companies like UniCredit and Eni, and Libyan leader Muammar Gaddafi's first visit to Italy this week has spurred hopes that Libyan capital will continue to prop up Italian companies amid the crisis.

Abdulhafid Zlitni, chairman of the Libyan Investment Authority wealth fund, in a small group interview said Europe's No. 2 utility Enel was among various companies Libya is eyeing as its next investment move in Italy.

Enel, which launched a rights issue this month, has said it had received strong interest from Libya and Italian media have speculated that Libya could take part in the capital hike.

Enel shares were up 0.5 percent, while Impregilo shares were up 2 percent after the comments.

"We are looking at the electricity and renewable sector," Zlitni said. "We are also interested in infrastructure companies who have the capacity to invest in construction.".

When asked about Italy's No. 1 builder Impregilo, he said: "They are probably one of the companies that we are looking to invest in, and there are plenty of others."

Setting up joint ventures with Italian companies for projects in the North African country would be the other main focus of talks during the trip, Zlitni said.

Western companies have been eagerly eyeing infrastructure and energy projects in Libya since international sanctions were lifted in 2003, and Italy has said its firms would be favoured for contracts due to warming political ties.

"We will look at joint ventures," Zlitni said. "They are very profitable," he said.

For example, there is "plenty of scope" for Italy's biggest telecom operator Telecom Italia to be involved in the the Libyan telecoms sector.

Libya last year held talks to buy a stake in Telecom Italia but they broke down on concerns over price and debt levels.

Libya is still "following the value of Telecom Italia stock" but would only buy shares if the price was "good and suitable", Zlitni said.

Libya holds a 4.6 percent stake in Italy's No. 2 bank UniCredit and came to the bank's rescue earlier this year by helping plug a shortfall in capital-raising efforts.

It has a stake of less than 2 percent in Italy's Eni, and a minor stake in car maker Fiat. (Editing by Will Waterman and Rupert Winchester)

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