Judge puts Gas Natural bid for Endesa on hold
21 March 2006, MADRID — A judge has ordered the suspension of the Gas Natural takeover bid for electricity utility Endesa.
21 March 2006
MADRID — A judge has ordered the suspension of the Gas Natural takeover bid for electricity utility Endesa.
The order follows a move by Endesa to block the bid through legal action which was launched in December.
The judge's order, made in the mercantile division in Madrid, could lead to an appeal by the gas giant.
Endesa must pay EUR 1 billion in terms of a surety against any possible damages while the takeover is held up.
Gas Natural launched a EUR 23.4 billion takeover for Endesa last year which the electricity company turned down and has been determined to fight off.
Though the Gas Natural bid has been supported by the Spanish government, the German energy firm E.ON launched a EUR 29 billion counter-bid for Endesa.
The battle for control of Endesa erupted into a political row after the Spanish government was accused by the European Commission of adopting protectionist measures to support Gas Natural's offer.
Madrid strengthened the powers of its own energy watchdog to allow them to ward off foreign buyers.
[Copyright EFE with Expatica]
Subject: Spanish news