Merrill Lynch and Schroder Salomon Smith Barney may finally have found buyers for the Spanish utility Hidroelectrica del Cantabrico - almost a year after they were appointed mergers and acquisitions advisers.

Portuguese utility Electriciadade de Portugal (EDP), advised by Morgan Stanley Dean Witter, and Spanish bank Cajastur, advised for the first time by Rothschild, have launched a joint €3.5bn ($3.2bn) bid for Cantabrico.