Fresh bid to create Europe’s biggest energy firm
26 March 2007, MADRID – The battle to win control of Spain’s biggest utility took a fresh turn on Monday when the German energy giant E.ON said it would raise its offer for Endesa.
26 March 2007
MADRID – The battle to win control of Spain’s biggest utility took a fresh turn on Monday when the German energy giant E.ON said it would raise its offer for Endesa.
E.ON is to up its offer to EUR 40 per share from 38.75 and it will start legal action against the Italian utility Enel SpA and the Spanish builders Acciona.
The new offer values Endesa at EUR 42.3 billion.
The Spanish stock exchange watchdog CNMV has suspended trading on Endesa since Friday.
The raised offer by the German energy company comes after Enel and Acciona said on Friday they would launch a takeover bid for Endesa if E.ON’s bid for the company failed.
The Italian and Spanish companies responded to Monday's offer by the German firm by saying they would up their bid to EUR 41 per share.
But they have been banned from making a new bid until September by the CNMV.
After the move by the Italian-Spanish axis, who own 46 percent of Endesa together, the CNMV allowed E.ON to up their bid in an unprecedented move.
The CNMV said any takeover bid in the near future by the Italian-Spanish companies could ‘perturb’ any move by E.ON.
The German company said it would “exercise all the legal options possible against Enel and Acciona, whose move the CNMV has already said were illegal”.
The battle for control of Endesa has been underway for over 18 months.
It started when Gas Natural of Spain made the first but ultimately unsuccessful move in September 2005. This bid was trumped by E.ON which made a larger offer.
But the Spanish government then said it would prefer Gas Natural to win the battle an imposed conditions, which the European Commission said were illegal under EU laws.
Whoever finally gains control of Endesa looks set to create the largest energy company in Europe.
[Copyright EFE with Expatica]
Subject: Spanish news