Talks between A2A SpA (A2A.MI) and Electricite de France SA (EDF.FR) over the future of their joint running of Edison SpA, Italy's No.2 electricity generator, have been extended by six months, said an official Italian investor allied to A2A.

"Negotiations [between A2A and EDF] have been extended by six months," said Andrea Viero, who is director general of Iren SpA (IRE.MI), and a shareholder of Edison SpA (EDN.MI), on the sidelines of a meeting in Milan Tuesday.

A2A is conducting the negotiations with EDF over Edison on behalf of smaller Italian investors such as Iren.

Edison's shareholder pact, controlled by EDF and A2A, won't be scrapped as the sides continue talks, said Viero.

The deadline for scrapping the pact was today, Tuesday.

A2A and EDF are holding talks to determine how to proceed with their joint control of Edison after the Italian municipal utility has said it doesn't have a strong enough say in the energy company.

People familiar with the matter have said A2A and EDF are working on a deal whereby the French company would become the majority investor in Edison by ending the shareholders' pact, while A2A would be compensated with mainly hydroelectric power plants.

Edison website: http://www.edison.it

-By Oscar Baldini, MF-DJ, and Liam Moloney, Dow Jones Newswires; +39 06 6976 6924; liam.moloney@dowjones.com
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