UK National Grid 'eyes Chinese bids'

Utilities attract foreign companies which are looking for steady generation of earnings

National Grid Plc has selected a consortium of investors that includes Allianz SE and the infrastructure arm of Australian investment bank Macquarie Group Ltd as potential bidders for its UK gas distribution business, people familiar with the matter said.

Two separate groups of Chinese investors, including one led by Fosun International Ltd and another by China Resources Gas Group Ltd, have also been invited to make final bids for the assets by the November deadline, the people said, asking not to be identified as the information is private. A group of investors that included Canada Pension Plan Investment Board and Middle Eastern wealth funds has dropped out, the people said.