A2A SpA (A2A.MI) and Iren SpA (IRE.MI), Italian utilities and major shareholders of Edison SpA (EDN.MI), are willing to give up their holdings in Edison in exchange for all the assets of Edipower, which include hydroelectricity plants and combined cycle gas plants, and even taking on its EUR1.1 billion debt, La Repubblica reported in its Internet edition Tuesday, without citing sources.

The proposal will be studied at an Edison board meeting scheduled for Wednesday, the newspaper reported.

Once they have control over Edison's Edipower division, A2A and Iren ultimately plan to merge with Acea Roma to create a diversified utility firm.

Electricite de France SA (EDF.FR) and a group of Italian companies share ownership of Edison and have been holding talks for months over the industrial and shareholding reorganization of Edison, without reaching any deal.

Newspaper website: www.repubblica.it

-Dow Jones Newswires, enza.tedesco@dowjones.com

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