MADRID - Spanish power grid operator REE said recently it could look into taking a stake in its Portuguese counterpart REN in the future, although it had no immediate plans to do so.=

Taking a stake in REN would ease a planned integration of Spain and Portugal's energy market. The amalgamtion would be set for the second half of 2004 if Lisbon follow's Spain's lead and liberalizes its energy market after several delays.

REE said it could consider buying a stake in REN in the future, a company spokesman told Reuters.

"At the moment we're not considering it."

Analysts have been wondering whether REE would buy a stake in REN since state-controlled Electricidade de Portugal said recently it would cut its stake in the firm to five percent from the 30 percent it now holds.

The Portuguese government owns the remaining 70 percent of REN. EDP did not say when it would reduce its stake but Portugal has pledged to liberalize its energy market from July 1, 2004.

REE's main shareholder is the government, with 28.5 percent, while Spain's top five power utilities each hold between one and three percent.