Secret deal in bid for Spain's biggest utility

29th January 2007, Comments 0 comments

Secret deal in bid for Spain's biggest utility

Secret deal in bid for Spain's biggest utility

29 January 2007

MADRID — Two courts are investigating if Spain's biggest utility gave a Germany's

biggest power company an unfair advantage in its takeover bid.

The Spanish daily El Pais reported on Monday Endesa signed a  secret deal with E.ON to

limit the amount of information made available to regulators.

The deal, says the paper, was signed in January 2006. 

The courts are now investigating whether Endesa unfairly
helped E.ON prepare its takeover bid by giving it private information that it denied

the other company bidding for control of Endesa, Gas Natural.

Endesa claims it has offered Gas Natural all the information it needs, but the latter

insists this information was denied.

The paper claims the secret deal said E.ON would keep any confidential information

about Endesa under
wraps for a period of two years.

Additionally, both companies agreed that if a court, government agency or authority

requested further information — as was the case when the CNMV
National Securities Commission  started investigating — they would act together to

disclose "a minimum amount of information".

The CNMV is not opposed to companies exchanging confidential information, but opposes

Endesa denying the same information to rival Gas Natural.

[Copyright EFE with Expatica]

Subject: Spanish news

29 January 2007

MADRID — Two courts are investigating if Spain's biggest utility gave a Germany's biggest power company an unfair advantage in its takeover bid.

The Spanish daily El Pais reported on Monday Endesa signed a  secret deal with E.ON to limit the amount of information made available to regulators.

The deal, says the paper, was signed in January 2006. 

The courts are now investigating whether Endesa unfairly helped E.ON prepare its takeover bid by giving it private information that it denied the other company bidding for control of Endesa, Gas Natural.

Endesa claims it has offered Gas Natural all the information it needs, but the latter insists this information was denied.

The paper claims the secret deal said E.ON would keep any confidential information about Endesa under wraps for a period of two years.

Additionally, both companies agreed that if a court, government agency or authority requested further information — as was the case when the CNMV National Securities Commission  started investigating — they would act together to disclose "a minimum amount of information".

The CNMV is not opposed to companies exchanging confidential information, but opposes Endesa denying the same information to rival Gas Natural.

[Copyright EFE with Expatica]

Subject: Spanish news

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