German energy giant E.ON has not had its expected interest in its proposed sale of its energy from waste unit.
The company operates facilities across Europe, and according to Reuters bids are unlikely to exceed €800 million to €1 billion.
Overcapacity in waste burning plants where it operated, sharply falling wholesale electricity prices and an expected decline in the amount of waste available for EfW is cooling bidder interest.
Reuters reports that Morgan Stanley Infrastrcuture and the Swedish private equity group EQT are seen as the frontrunners to buy the business.
Sembcorp from Singapore and German utility MVV are both believed to be interested, but the latter only wants to buy part of the business, while E.ON wishes to sell it as a whole entity as it includes assets that need investment and would be unsellable on a standalonge basis.
E.ON Energy from Waste generated revenues of €544 million in 2011 and has 18 plants in Europe, with most of these in Germany.
These have an annual capacity of about 4.0 million tonnes.