Iberdrola goes on offensive over EDF

28th February 2008, Comments 0 comments

Spanish power firm Iberdrola on Monday presented a complaint before the European Commission alleging that the French state's protection of energy giant EDF is a violation of EU law.

28 February 2008

MADRID -  Following the premise that a good offence is the best defence, Spanish power firm Iberdrola on Monday presented a complaint before the European Commission alleging that the French state's protection of energy giant EDF is a violation of EU law.

EDF, which confirmed earlier this month that it has been in talks with Iberdrola shareholder ACS over a possible takeover bid, is around 85-percent owned by the French state, creating, in the Spanish company's view, an unfair advantage within the European common market.

In its complaint presented to Brussels yesterday, Iberdrola said that the French state's controlling stake in EDF represents a kind of "golden share," or state veto, that blocks foreign takeovers, but that nonetheless allows the company to expand into liberalised EU markets, such as Spain's.

[Copyright EL PAÍS / ANGELES ESPINOSA 2008]

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