Endesa takeover battle takes surprising new turn
26 September 2006, MADRID — The battle for control of the Spanish utility group Endesa took a surprise twist when the Spanish building group Acciona bought 10 per cent of the energy giant.
26 September 2006
MADRID — The battle for control of the Spanish utility group Endesa took a surprise twist when the Spanish building group Acciona bought 10 per cent of the energy giant.
Acciona S.A., reported the EUR 3.388 million purchase to the Spanish stock exchange watchdog, said it did not discount raising its share in Endesa up to a 25 per cent, which would amount to a takeover bid.
Until a few years ago a small family-owned business run by the Entrecanales family, Acciona is now one of the biggest construction groups in Spain.
Endesa has been the subject of a bitter and hotly-contested takeover battle between the Spanish Gas Natural group and the German energy group E.ON.
The move by Acciona comes as the European Commission today will rule on Tuesday the Spanish government acted illegally when it imposed conditions on a EUR 27 billion takeover of Spanish power group Endesa by E.ON.
The Spanish energy regulator, the National Energy Commission (CNE), imposed 19 conditions on the German bid, breaking European competition law.
Brussels ruled many of the conditions breach treaty rules on the free movement of capital in Europe.
The takeover bid has become a political battle which Spain has lost.
José Luis Rodriguez Zapatero met German Chancellor Angela Merkel earlier this month and agreed Spain would back down over the Endesa controversy in return for support from Berlin for more EU cash aid in dealing with the influx of immigrants from Africa to the Canary Islands this year.
Originally, Mr Zapatero had championed the less lucrative bid by the Spanish company Gas Natural for Endesa, as a patriotic gesture.
The EC ruling will pave the way for the German takeover.
[Copyright EFE with Expatica]
Subject: Spanish news