MADRID - Spanish electricity company Iberdrola SA (IBE.MC) said Monday it had hired Morgan Stanley (MS) to sell a 10% stake the company owns in wind turbine maker Gamesa Corporacion Tecnologica SA (GAM.MC).

In a filing to the Spanish market regulator, Iberdrola said it would sell 24.3 million shares to institutional and qualified investors.

The 10% stake is worth EUR407 million, according to Gamesa's closing share price. Gamesa shares closed Monday 6.5% higher at EUR16.78, outpacing an overall higher Spanish market.

Iberdrola has a total stake of 24% in Gamesa, according to records from the Spanish market regulator.

Iberdrola, based in Bilbao, northern Spain, is the world's biggest wind-power generator.