* Sale of German power grid possible this week -sources
* Price discussed is about 1 bln eur including debt -sources
* Buyers include insurers Munich Re, Talanx -sources
* RWE shares rise 0.9 pct, peers up 0.7 pct
(Adds quote, details on price)
By Peter Dinkloh and Tom Kaeckenhoff
DUESSELDORF/FRANKFURT, July 13 Germany's RWE
, Europe's fifth-largest utility, might be able to
clinch a 1 billion euro ($1.4 billion) deal to sell its German
long-distance power grid this week, two people familiar with the
matter told Reuters.
"We are close to the end," said a third person, who is close
to the potential buyers, on Wednesday.
The consortium buying the 75 percent stake RWE wants to sell
includes five pension funds of German and Swiss insurers,
including Munich Re (MUVGn.DE) and Talanx , the two
RWE is the third German utility to sell its high-voltage
power grid as regulation diminishes returns from the networks
and weak power and gas prices as well as a tax on their nuclear
power plants make the utility predict three years of falling
Chief Executive Juergen Grossmann has said he plans to sell
assets for 8 billion euros, but people with knowledge of the
matter told Reuters that he also considered giving up control of
the utility and merging it with Spanish peer Iberdrola .
The 113-year old utility, which coordinates power flows in
much of western Europe, is discussing selling the grid for about
1 billion euros, including debt, two of the sources said.
That sum represents the so-called regulatory asset value of
the 11,000 kilometre network, which is the value the grid
regulator uses to calculate the allowed returns for the grid.
It wants to retain operational control of the network after
the sale, the sources said.
RWE, Commerzbank and the insurers declined to comment.
RWE shares closed up 1 percent to 35.865 euros, while the
Stoxx 600 utilities index rose about 0.7 percent.
The deal has already been close to being finalised several
times, but was delayed by various problems, one of the sources
"One time, one party dropped out of the consortium and
another had to be found."
Later, minor issues regarding the legal fine print and
financial governance needed to be cleared up, the person said.
The grid, owned by an RWE unit called Amprion, spans the
energy-hungry Rhine/Ruhr industrial region and the hydroelectric
power plants in the Swiss Alps.
(Additional reporting by Arno Schuetze; Writing by Peter
Dinkloh; Editing by Will Waterman)