Allianz mulls purchase of E.ON grid

FRANKFURT (Reuters) - German insurer Allianz (ALVG.DE) is considering a purchase of German utility E.ON's EONG.DE high-voltage grid, according to a report in a German daily.

The insurer's infrastructure team was in intense preparations of an upcoming sales process, Financial Times Deutschland said, quoting financial sources.

E.ON said in February it aimed to sell its high-voltage, long-distance power grid and 4,800 megawatts in generation capacity to settle two European Commission antitrust cases against the company.

Bankers have said potential bidders include other European grid operators such as the National Grid (NG.L), adding that many financial bidders may also express interest.

Utilities are attractive to financial buyers such as banks, infrastructure investors and pension funds, who value their stable cash flow, which they can use to pay interest on bonds.

(Reporting by Nicola Leske; Editing by Tim Dobbyn)