Iberdrola's stock rises again as M&A talk persists
Shares of Iberdrola, Spain's second-largest electricity supplier, rose sharply again on Thursday amid ongoing takeover speculation.1 February 2008
MADRID - Shares of Iberdrola, Spain's second-largest electricity supplier, rose sharply again on Thursday amid ongoing takeover speculation.
Iberdrola's share price closed yesterday up 6.49 percent, while its recently listed renewable energy division Iberdrola Renovables added 1.31 percent.
Iberdrola' shares rose 3.58 percent the previous session after the Financial Times reported Electricité de France and Spanish builder ACS were in talks on a possible joint bid for the company. ACS said it had not reached any agreement with EDF
Spanish financial daily Cinco Días reported yesterday German power utility E.ON was also eyeing Iberdrola and had decided to acquire stock derivatives in the company.
E.ON failed in a bid to acquire Endesa, Spain's largest electricity company, which was eventually acquired by Italy's Enel and Spanish conglomerate Acciona.
The European Commission, as expected, announced yesterday that it had started infringement procedures against the Spanish government for refusing to lift conditions imposed on the Enel and Acciona takeover of Endesa.
Brussels claims that the provisos breach EC treaty rules on the free movement of capital and freedom of establishment. The Spanish industry ministry insisted the conditions are legal. The Commission has also taken legal action against Spain over E.ON's failed bid.
[Copyright EL PAÍS / Adrián Soto 2008]
Subject: Spanish news