Italian utility Iren SpA (IRE.MI) said late Wednesday its board has decided to vote against the Edipower deal as the term sheet proposed by its partner municipal utility A2A SpA (A2A.MI) doesn't reflect the "essential points" of Iren's position.

Iren's board "authorized its representatives in the social and shareholders bodies of Delmi...to express contrary vote unless the social and shareholders meetings will be postponed to allow a further review of the term sheet," the company said in a filing to the Italian stock exchange.

Electricite de France SA (EDF.FR) agreed recently with a group of Edison SpA (EDN.MI) shareholders to increase its stake to nearly 81% from 50% for about EUR700 million. In exchange, the group of shareholders led by A2A will take for EUR800 million a 70% stake in Edipower through a holding company called Delmi, in which Iren is a shareholder.

Delmi's shareholders' meeting on Thursday was scheduled to clear the deal.

Exchange Web site: www.borsaitaliana.it

-By Enza Tedesco, Dow Jones Newswires, enza.tedesco@dowjones.com

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