Enel to take control of Spanish utility

21st February 2009, Comments 0 comments

Italian energy giant Enel was set Friday to buy a 25-percent stake in Spain's second largest utility Endesa, giving it almost complete control of the firm in a multi-billion-euro deal, Spanish media said.

MADRID - Spain's stock market regulator suspended trading earlier Friday in Endesa and Acciona, the construction group from which Enel wants to buy the stake, citing "circumstances that could upset the normal operations."

Endesa announced a board meeting for later Friday, after which the deal is expected to be announced, Spanish media said.

Enel already holds 67 percent of Endesa, and analysts had expected Acciona to sell the Italian group its 25-percent stake to give it a 92-percent holding.

The Internet site of the El Pais newspaper cited a copy of the deal saying Acciona would receive 8.24 billion euros (10.53 billion dollars) in cash plus renewable energy assets in Spain and Portugal worth 3.1 billion euros.

The deal would be a major victory for Enel as Endesa was at the centre of a takeover battle between Enel and Acciona on one side, and German energy group E.ON on the other, between 2005 and 2007. E.ON eventually dropped its bid.

AFP / Expatica

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