Fiat Avio

In a deal totalling E739m, CVC Capital Partners has sold its 75% stake in Inalta, the Spanish power transmission group, to Red Eléctrica de España (REE), the partially state-owned electricity network operator. E247m was paid for the equity with the rest of the proceeds made up by debt. REE, which already held a 25% stake in Inalta, now controls around 99% of Spain's power grid with a minority stake held by Hidrocantábrico. The deal was agreed on 15 February and no further details regarding the transaction have been released. Inalta was the newco formed for the purchase of Iberdrola's high-tension electricity transmission assets. CVC previously outbid REE when Inalta was first auctioned in 2002 but subsequently invited REE into the deal to take 25%. The total value of the deal was E805m and was completed in December 2002. Previous fundingInfraestructuras de Alta Tension (Inalta) owns and manages a high-voltage electricity transmission network in Spain, comprising 4,946 kilometres of high-voltage network, 656 positions in 123 substations and 48 large transformer units with a total transformation capacity of 14,806 MVA.In 2004, REE reported annual turnover of E937.7m, a 5.5% increase on 2003; operating profits grew by 10.7% to E273m. With the purchase of Inalta's assets, REE's turnover is expected to rise by a further 18%. However, the transaction has increased the amount of debt held by the company, previously around E1.9bn and now E2.8bn.

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• DACH