Gas Natural Fenosa in Race for BG's Gujarat Gas Stake

Spain’s Gas Natural Fenosa is reportedly begun talks with BG Group Plc  to buy the UK oil and gas company's 65 percent stake in India's Gujarat Gas, Reuters reported.

A three-member consortium of state-run Oil and Natural Gas Corp, Bharat Petroleum Corp Ltd and Gujarat State Petroleum Corp (GSPC) is the only other bidder in talks on buying BG's stake.

Reuters said that BG Group hopes to finalise the deal with either of the two bidders by early May.

Germany's biggest utility, E.ON AG, UK-based private equity firm Actis, and India's Adani group and Torrent group had been among the initial bidders for the BG stake, but dropped out given stiff valuations.

While the Spanish utility is likely to have bid close to the market price, the Indian consortium has valued the stake at a discount.