Endesa also to appeal E.ON takeover conditions
8 August 2006, MADRID – Electricity firm Endesa is to appeal the conditions attached to the E.ON takeover.
8 August 2006
MADRID – Electricity firm Endesa is to appeal the conditions attached to the E.ON takeover.
A the end of last month, the Spanish energy regulator the CNE gave EON’s takeover of Endesa the green light, but said the German firm would have to sell off 15 percent of the electricity firm, which would include around a third of Endesa’s energy potential in Spain.
The European Commission, which is examining whether the conditions are legal, has already written to the Spanish government asking it to explain the terms.
EON has said it will appeal the decision through the department of industry in Spain and, if necessary, by asking Europe to overturn it.
On Monday evening, Endesa’s board became the latest to vote to protest the conditions with the department of industry.
Endesa said the breaking up of the company was bad news for the company and its shareholders and put the provision of energy in Spain at risk.
The government and the CNE have defended their imposing of conditions on EON’s EUR 29.1 billion bid as necessary to protect the supply of Spanish energy to consumers. Earlier in the year, the government extended the powers of energy regulator CNE to allow it to veto foreign bids against Spanish companies in what it classified as a "strategic industry".
[Copyright EFE with Expatica]
Subject: Spanish news