Italians up stake in Spanish power giant Endesa
1 March 2007, MADRID – The long-running saga for control of Spain’s biggest power company took a fresh turn on Thursday when Italian utility Enel bought another 7 percent stake.
1 March 2007
MADRID – The long-running saga for control of Spain’s biggest power company took a fresh turn on Thursday when Italian utility Enel bought another 7 percent stake.
The partly state-owned Italian company now owns 17 percent of the Spanish company after buying 10 percent on Tuesday.
This could disrupt moves by the German energy giant E.ON for Endesa after it appeared it had won a long takeover battle with Spanish rivals Gas Natural.
And reports in Spain said Enel had held meetings with the Spanish industry minister Joan Clos in February.
It came just seven days after Jose Luis Rodriguez Zapatero and Italian prime minister Romano Prodi met, raising speculation they had made a deal.
A possible pact could have been made with Spanish construction company Acciona, which owns 25pc of Endesa, to prevent the Germans gaining control.
Clos said on Tuesday that he believed it was more likely that Spanish investors would end up in control of Endesa.
In an interview with Spanish radio, Clos said that a "Spanish solution" to the contested takeover was more likely.
Endesa probably would become controlled by a stable group of Spanish investors formed around Acciona, owner of a 21 percent stake, he told the radio station Cadena Ser.
His remarks were confirmed by one of his spokesmen.
E.ON, which offered EUR 41 billion needs investors holding more than 50 percent of Endesa's stock to defeat anti-takeover measures for the world's largest utility takeover to proceed.
Endesa, based in Madrid, has called a shareholders' meeting for 20th March to vote on modifying the bylaws.
[Copyright EFE with Expatica]
Subject: Spanish news