Brussels sues Madrid again over Endesa takeover

31st January 2007, Comments 0 comments

31 January 2007, BRUSSELS — Brussels threatened to sue Madrid a second time on Wednesday for trying to stop a takeover bid for the country's biggest utility Endesa by German energy giant E.ON.

31 January 2007

BRUSSELS — Brussels threatened to sue Madrid a second time on Wednesday for trying to stop a takeover bid for the country's biggest utility Endesa by German energy giant E.ON.

Spain failed to obey two orders, last September and December, to end restrictions on E.ON's purchase of Endesa, the European Commission said.

The EC brought another at an EU court last week over a Spanish law which allowed the Spanish national energy regulator to impose these restrictions.

The cases challenge Spain's attempts to stave off E.ON's bid and give the Spanish company Gas Natural an advantage in its attempts to take over Endesa.

Jonathan Todd, EC spokesman said: "Spain failed to withdraw the measures which we had declared illegal.

The EC said Spain did not go far enough to remove restrictions on E.ON.

The EU agreed in 2003 to end monopolies in electricity and gas utilities starting in 2004 for business customers, and in homes starting next July.

The change spurred a slew of energy mergers that has prompted a backlash from some governments, including France, which pre-empted a possible Italian bid for Suez SA by merging it with Gaz de France SA.

[Copyright EFE with Expatica]

Subject: Spanish news

31 January 2007

BRUSSELS — Brussels threatened to sue Madrid a second time on Wednesday for trying to stop a takeover bid for the country's biggest utility Endesa by German energy giant E.ON.

Spain failed to obey two orders, last September and December, to end restrictions on E.ON's purchase of Endesa, the European Commission said.

The EC brought another at an EU court last week over a Spanish law which allowed the Spanish national energy regulator to impose these restrictions.

The cases challenge Spain's attempts to stave off E.ON's bid and give the Spanish company Gas Natural an advantage in its attempts to take over Endesa.

Jonathan Todd, EC spokesman said: "Spain failed to withdraw the measures which we had declared illegal.

The EC said Spain did not go far enough to remove restrictions on E.ON.

The EU agreed in 2003 to end monopolies in electricity and gas utilities starting in 2004 for business customers, and in homes starting next July.

The change spurred a slew of energy mergers that has prompted a backlash from some governments, including France, which pre-empted a possible Italian bid for Suez SA by merging it with Gaz de France SA.

[Copyright EFE with Expatica]

Subject: Spanish news

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