EXCLUSIVE-E.ON to sell German grid to TenneT-sources

FRANKFURT/DUESSELDORF, Nov 9 (Reuters) - Germany's E.ON (EONGn.DE), the world's largest utility, has agreed to sell its German long-distance power network to Dutch grid operator TenneT for around 1 billion euros ($1.50 billion), according to two people familiar with the situation.

It marks the first time that a high-voltage grid -- vital to ship power from power stations to distributors and industrial consumers -- on Europe's largest power market will not be operated by a local utility.

The sale of the 10,700 kms of power lines in a corridor between the Danish and the Austrian borders will become effective Jan. 1, 2010, said the sources, who declined to be identified because E.ON has not yet made the decision public.

E.ON declined to comment on Monday.

(Reporting by Peter Dinkloh and Tom Kaeckenhoff; Editing by Michael Shields)

((peter.dinkloh@reuters.com; +4969 7565 1345; Reuters Messaging peter.dinkloh.reuters.com@reuters.net))

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