23 March 2007

MADRID – The ongoing battle for control of Spain’s biggest energy firm took a fresh turn on Friday with a fresh takeover bid for Endesa from Italian utility Enel and Spanish construction firm Acciona.

Enel SpA, Italy's biggest utility, and Acciona SA said they may bid for Endesa SA to beat the EUR 41 billion bid from German energy giant’s E.ON.

But Enel and Acciona will bid only if E.ON's offer fails.

They already control 46 percent of Endesa.

The bid from E.ON, Germany's biggest utility, will lapse on 29 March.

The Spanish stock exchange said on Friday it would not allow Enel and Acciona to make an offer until September.

They also said they would allow E.ON to raise its current offer for the last time by 26 March.

For 18-months, European utilities have been fighting over Endesa's 22 million customers and hundreds of power plants.

New EU rules will open up Europe’s energy markets to more competition in July.

[Copyright EFE with Expatica]

Subject: Spanish news