Long battle for control of Spanish energy giant over

11 April 2007

MADRID – The long battle for control for Spain’s biggest energy company Endesa appeared to be over on Wednesday after construction firm Acciona and Italian utility Enel launched a new offer.

Acciona and Enel, which control 46 percent of Endesa, offered  EUR 41.3 per share, valuing the company at EUR 43.2 billion.

Spain’s National Stock Market Commission stopped trade in Endesa shares before the offer, but these will later be lifted.

Last month, Acciona and Enel signed an agreement committing both parties to launching a joint takeover bid for Endesa of at least EUR 41 per share.
 
Earlier this month, German energy giant E.ON withdrew its bid for Endesa.

If Acciona and Enel are successful with their bid, E.ON will buy about EUR 10 bn worth of assets in Spain, Italy, France and Turkey which are at present owned by Endesa and Enel.

Endesa’s renewable-energy assets would be merged with Acciona’s energy division to create a separate renewable-energy company in which Acciona would have at least a 51 percent stake and Endesa the remainder.

Endesa is to remain a Spanish firm, controlled by a joint holding company called Newco, in which Acciona would have a 50 percent majority.

Acciona would appoint the executive chairman of Endesa, and Enel would appoint the chief executive.

The deal also includes the possibility of Endesa’s assets being split between Acciona and Enel, if they encounter irreconcilable differences while managing the company.

[Copyright EFE with Expatica]

Subject: Spanish news