EON AG (EOAN), which got non-binding bids of as much as 1.5 billion euros ($2 billion) for its energy- from-waste unit, will probably see interested parties reducing their offers in the next round, Frankfurter Allgemeine Zeitung reported, without saying where it got the information.

The unit, which has annual sales of 544 million euros and 1,300 employees, is likely to see earnings decline in coming years because of the “hard competitive situation” in the industry, the German newspaper said.

Companies in the bidding process include Morgan Stanley (MS)’s infrastructure fund, EQT Partners AB, Foster Wheeler AG (FWLT), Sembcorp, MVV Energie AG (MVV1), Remondis AG and GP Guenter Papenburg AG, FAZ said. EON plans to complete sale by the summer, the newspaper said.

To contact the reporter on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net