Gas Natural bids to become Spanish energy giant

6th September 2005, Comments 0 comments

6 September 2005, BARCELONA — Gas Natural, Spain's largest natural gas provider, has made a EUR 22.6 billion hostile takeover bid for the country's major power firm, Endesa.

6 September 2005

BARCELONA — Gas Natural, Spain's largest natural gas provider, has made a EUR 22.6 billion hostile takeover bid for the country's major power firm, Endesa.

If the takeover attempt succeeds, the Barcelona-based company will become the dominant player in the Spanish energy market.

Gas Natural will offer 7.34 euros and 0.569 of one its shares for each share of Endesa, a proposal that values the power producer at 12 percent more than the price of 19.09 euros for which its shares were selling prior to the suspension of trading in both firms once the bid was announced.

The combination of Gas Natural and Endesa would be the world's leading private energy concern by number of customers.

Spanish regulators shot down Gas Natural's unsolicited offer in May 2003 for Iberdrola, another electricity producer, but the Socialist government that took office in April 2004 has signaled a willingness to accept some consolidation in the energy sector.

Thirty-two percent of Gas Natural is owned by Spain's largest savings bank, La Caixa, while another 31 percent is in the hands of oil company Repsol. EFE

[Copyright EFE with Expatica]

Subject: Spanish news

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