The Italian group Enel SpA denied the information according to which it intends to sell its majority stake in the largest Spanish electricity supplier – Endesa – to the Spanish energy company Repsol, Reuters reports.

The Spanish publication El Confidencial announced on Tuesday that Repsol’s president, Antonio Brufau, met with Borja Prado, an investment banker and former president of Endesa, to discuss a potential takeover of Endesa, ahead of this month’s elections in Spain.

“Enel denies the rumors about Endesa as totally unfounded,” the Italian group informed in a statement, responding to the information published by El Confidencial, according to Agerpres.

“Enel does not intend to sell its stake in Endesa, neither now nor in the future, as the company is a key asset for its strategy.”

The Italian group also emphasized that there had been no discussions regarding such a transaction.

“There has never been a meeting between the heads of Enel and Repsol, nor with Borja Prado. This false news risks affecting the performances on the stock market,” states Enel.

On Tuesday, Repsol shares were down 3.2 percent, compared with a 0.5 percent decline in the Madrid Stock Exchange’s main Ibex index.

A Repsol spokesman said the firm was not considering any deal for Endesa.

Enel’s 70% stake in Endesa is valued at nearly 15 billion euros, based on the Spanish firm’s share price on Tuesday. Following media speculation, Enel shares rose to 6.34 euros, the highest level this year.

A report by Equita analysts said the sale would significantly reduce Enel’s net debt. Last year, Enel committed to reducing its debt through a 21 billion euro asset sales plan, especially in Latin America and Romania.

The replacement of Enel CEO Francesco Starace with Flavio Cattaneo in May fueled speculation about potential changes to the group’s long-term strategy.