Iberdrola's renewable energy unit is negotiating the sale of its main asset, Europe's largest windpower project with 1,200 megawatt capacity in Romania, to Chinese company Sinovel, Spanish financial daily El Economista reports.

Sources close to the operation confirm that talks are ongoing but that there is no binding offer. For a deal to go through, the Chinese company must find a partner to deveop the windpower farm, which will supply energy to a million homes and will reduce carbon dioxide emissions by 1.25 million tons.

The sale would be part of a divestment strategy being prepared by the Spanish power company that will be presented in London on Wednesday following the quarterly earnings presentation.

Analysts at Deutsche Bank have raised their price target for Iberdrola to €4.20 from €3.80 and reiterated their hold rating.

By 11:18, shares of Iberdrola were down 0.50% at €3.966.

MJ

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