Endesa saga reaches final chapter after a year

21 November 2006

MADRID — The long-running battle for control of Spain’s biggest energy company looked to finally be nearing its end.

Endesa said on Tuesday it will evaluate German rivals E.ON improved EUR 35 per share offer when it is formally lodged.

But it is highly unlikely to refuse it the bid.

E.ON initially offered EUR 25.4 a share in cash for Endesa but then said it planned to raised its bid to EUR 35.

In a statement, Endesa said: “The board unanimously recommends that (shareholders) do not accept the EUR 25.4 a share offer given the commitment of the bidder to raise this offer to a minimum of EUR 35 a share.”

The Spanish stock market watchdog CNMV has already approved the increased bid.

The only last minute hitch is the acceptance period has been temporarily held-up because of a legal hold-up  involving  Spanish energy giant Gas Natural competing offer.

Last week, Endesa said it would withdraw a legal block it started against Gas Natural’s bid.

But this could take two months.

[Copyright EFE with Expatica]

Subject: Spanish news