Enel, Acciona offer for Endesa after E.ON bid ends 02/04/2007 00:00

3 April 2007

MADRID – Italy's Enel and Spanish builder Acciona were expected to make an offer for Spain's largest utility now that German energy giant E.ON has dropped its bid for Endesa.

E.ON signed an agreement with Enel and Acciona according to which the German group is bowing out of the battle for Endesa in exchange for the opportunity to purchase power generation assets valued at EUR 10 billion in Spain, Italy, France, Poland and Turkey.

The deal came after a hard-fought 19-month battle to secure control of Endesa.

It also followed the resignation of the president of Spain’s stock exchange watchdog over the takeover bid.

Manuel Conthe, president of the National Stock Exchange Commission (CNMV) announced his decision after the watchdog went against his recommendation over the takeover saga for Spain’s biggest power company.

He recommended the Italian utility Enel SpA and the Spanish building company Acciona should be punished for alleged irregularities which E.ON claimed they committed which contravened laws governing takeovers.

But the CNMV opted to force the companies to wait six months until they could launch a takeover, giving the German power giant E.ON preference. 

The takeover saga for Endesa, Spain’s biggest utility, involved the German power giant E.ON whose bid is opposed by Enel and Acciona, who together are the biggest shareholders in Endesa.

The bitterly fought battle to gain control of Endesa started in September 2005 with an offer from Spain’s Gas Natural.

The larger bid by the German company was opposed by the Spanish government which faced legal action from the European Commission.

Spain’s industry minister Joan Clos appeared before the EC on Monday to answer charges Madrid had acted illegally in imposing conditions on the German bid.

[Copyright EFE with Expatica]

Subject: Spanish news