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3 January 2006
MADRID — Spain’s competition tribunal has opposed Gas Natural’s EUR 22 billion bid for Endesa.
But it still might not mean that the gas giant’s bid for Spain’s biggest electricity company will lead to its veto by the Socialist government.
The government has the last word on the deal and is expected to make a decision next month.
Spain’s competition tribunal decided on Monday that the purchase of Endesa by Gas Natural would be detrimental to competition in the sector.
Endesa and Gas Natural declined comment.
The competition watchdog was expected to vote against the takeover as it is dominated by members sympathetic to the conservative opposition Popular Party, which opposes the offer.
Jose Luis Rodriguez Zapatero’s Socialist government is still expected to approve the bid within the next month.
Meanwhile, Spain’s national energy commission has supported the bid, but with some reservations.
What could still change are the terms of the bid.
Endesa, which is fighting the takeover, wants to pay shareholders an extra dividend from the sale of a telecoms stake.
[Copyright EFE with Expatica]
Subject: Spanish news