E.ON may be looking to sell KU, LG&E

The parent company of Kentucky Utilities and Louisville Gas & Electric may be looking to sell off the two companies, according to a media report.

SparkSpread, an energy industry Web site, has reported that Duke Energy and PPL Energy are reportedly bidding on the assets to be sold by German utility conglomerate E.ON. A report on the New York Times' DealBook blog states the two Kentucky companies, known as E.ON U.S., might be worth up to $6 billion.

A spokesman for the company in Kentucky said he could not comment on the report.

"The sale has been prompted by E.ON's desire to divest some of its overseas assets and concentrate on its market back home in Europe," according to The New York Times report.

Together, the two utilities serve more than 900,000 electricity customers in Kentucky and Virginia. LG&E also serves 318,000 natural gas customers.

The companies merged in the late 1990s and were then acquired by E.ON in 2002 as part of its purchase of their parent company Powergen.