Court suspends Gas Natural bid for Endesa
21 April 2006, MADRID — The Supreme Court has suspended Gas Natural's EUR 22.4 billion hostile takeover bid for Endesa, Spain's largest power company.
21 April 2006
MADRID — The Supreme Court has suspended Gas Natural's EUR 22.4 billion hostile takeover bid for Endesa, Spain's largest power company.
The court, which has decided to hear a case brought against the bid by Endesa, usually takes more than a year to make a final ruling.
Deputy prime minister Maria Teresa Fernandez de la Vega said the government will respect the court's decision.
The government had backed Gas Natural's bid to form one huge energy supplier.
Endesa chairman Manuel Pizarro has sued in European and US courts to thwart what would be the world's largest hostile takeover of a utility.
The suspension of the takeover bid is the second legal setback suffered by Gas Natural.
A commercial court last month halted its bid while it investigates an agreement to sell Endesa assets to its main rival, Iberdrola SA.
This has also held up a rival bid for Endesa by German power giants E.ON.
[Copyright EFE with Expatica]
Subject: Spanish news