Madrid cocks a snook at EC over Endesa takeover provisos

11th January 2008, Comments 0 comments

The Spanish government yesterday sent a letter to the European Commission insisting the conditions imposed on Enel and Acciona's takeover of Endesa were legal.

11 January 2008

MADRID - The Spanish government yesterday sent a letter to the European Commission insisting the conditions imposed on Enel and Acciona's takeover of Endesa were legal, newswire EFE reported.

Brussels gave Spain until today to remove the provisos, which the EC claims breach a number of European regulations such as the free movement of capital and goods.

As a result of the government's refusal to stand down, the issue now looks set to go to the European Court of Justice.

Brussels has already initiated proceedings against Spain in the Luxembourg-based court over a decree in February 2005 granting the Spanish National Energy Commission (CNE) extra powers to vet an earlier takeover bid for Endesa by Germany's E.ON. Brussels also objected to a number of the provisos attached to the approval of E.ON's offer by the CNE.

E.ON dropped its offer for Endesa after Enel and Acciona acquired almost half of the company between them in the market. Enel and Acciona's EUR 42.5 billion bid last year gave them control of 92 percent of the electricity company.

[Copyright EL PAÍS / Adrián Soto 2008]

Subject: Spanish news

0 Comments To This Article