- A meeting between French President Nicolas Sarkozy and Belgium's Prime Minister Yves Leterme has failed to resolve a dispute over whether to allow EDF to buy Suez's stake in Belgian gas distributor Distrigas, (News) the president's office said following the meeting.

Sarkozy told Leterme that EDF should be treated the same as other companies interested in taking control of Distrigas from Suez, which is required to sell its stake as part of its merger with Gaz de France.

Leterme argued that Belgians find it hard to accept the idea that Belgium's gas would be controlled by the French. GDF Suez, the combined group expected to be created by the merger in June, controls Belgium's number one energy producer, Electrabel.

Belgian daily Le Soir has reported that Italy's Eni has made the best offer for Suez's 57.25 percent stake.

Germany's E.On AG is also in the running for Distrigas.

greg.keller@thomsonreuters.com

gk1/jlc

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