Suitors Queue for Morgan Stanley's Madrilena Red de Gas

Three consortia have entered the second round in the race for Spanish gas distributor Madrilena Red de Gas, majority owned by Morgan Stanley (MS), three sources familiar with the matter said on Wednesday.

Canada's CPP is bidding alongside German insurer Allianz and the Abu Dhabi Investment Authority (ADIA) for the asset, estimated to be worth between 1.2 and 1.8 billion euros ($2 billion) including debt.

Canada's PSP and European fund manager Arcus have also teamed up together for the company.

The third group comprises a consortium of Chinese state fund Gingko Tree and Dutch pension fund PGGM, the sources said.

Madrilena Red de Gas, Morgan Stanley, Allianz and ADIA declined to comment. Arcus, CPP, Gingko Tree, PSP, PGGM were not immediately available to comment. ($1 = 0.8992 Euros) (Reporting By Freya Berry