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MILAN, March 20 (Reuters) - Multi-utility AEM Milano said on Thursday it has no plans to buy its way into Italy's second-biggest energy group Edison during a capital hike.
Edison launched a 592 million euro capital increase on Monday as part of the debt-laden utility's 2.1 billion euro restructuring plan.
"We are not planning anything of this kind," AEM Chief Executive Giuliano Zuccoli told reporters when asked if AEM might buy shares left over by Edison investors.
Edison Chief Executive Umberto Quadrino said on Monday the group would consider bringing in new investors if the capital increase did not generate sufficient demand.
AEM, which provides power and gas in the Milan area, has been tipped by the Italian media as a possible suitor, but Zuccoli poured cold water on the idea.
"I deny the possibility of AEM subscribing to shares that are not bought," Zuccoli said.
Analysts have said the capital hike -- offering one new share at one euro plus a one-euro warrant expiring in 2007 per each existing share -- was unattractive to private investors who can find better bargains on the market.
Edison shares closed 0.7 percent lower at 0.825 euros. They have a one euro nominal value, however, so the new stock cannot be sold for less.
AEM shares closed down 2.8 percent at 1.18 euros.
Core shareholders in Edison's parent company Italenergia Bis -- Electricite de France [EDF.UL], Fiat , steelmaker Carlo Tassara and banks Capitalia , Sanpaolo IMI and Intesa -- have agreed to guarantee the capital hike but are expected to sell any newly acquired shares afterwards.