Spain's Gas Natural SDG SA (GAS.MC) doesn't plan to widen the size of a planned EUR3.5 billion capital increase to finance the purchase of Union Fenosa SA (UNF.MC), the company's chief executive said Tuesday.

CEO Rafael Villaseca also said that the timing of the capital increase will be decided at a March 10 shareholder meeting.

Villaseca added that 10 energy groups have already shown interest in possible divestments that Gas Natural may undertake in the course of the Union Fenosa purchase.

Divestments won't include Fenosa's gas unit, Union Fenosa Gas, though, Villaseca added. Italy's Eni SpA (E), which holds 50% of Union Fenosa Gas, has already said it may use pre-emptive rights to acquire the other half.

Spanish authorities will need to decide whether Gas Natural can keep Union Fenosa Gas or not, the CEO said.

Gas Natural is also considering the possibility of staying in a joint venture with Eni, in which each company keeps its 50% of Union Fenosa Gas, Villaseca said.

Villaseca said he foresees no difficulties in closing the acquisition of Union Fenosa.

Company Web Site: http://www.gasnatural.com

-By Bernd Radowitz, Dow Jones Newswires, 34-91-395-8125, bernd.radowitz@dowjones.com
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