Italy’sEnel said it could boost its stake in Endesa to 24.99 percent as itjumped into a takeover battle for the Spanish utility, potentiallythreatening a –41 billion ($54 billion) bid by Germany’s E.ON. EnelChief Executive Fulvio Conti said Europe’s third-biggest power utilitydid not plan a counter-offer to E.ON’s bid.
“We are not planningto counter the E.ON bid,” Conti told reporters on the sidelines of anenergy conference in Athens yesterday.
Asked if Enel would raiseits stake in Endesa to 25 percent, he said, “We are evaluating theoption.” Buying 25 percent of Endesa could trigger a takeover bid underSpanish rules.
Enel bought 9.99 percent of Endesa on Tuesday forEUR4.1 billion its biggest one-off investment outside Italy. It saidthe move was part of a strategy to strengthen its role in Europe’selectricity market.
“Enel will consider raising its stake inEndesa to 24.99 percent of the share capital, should the company obtainauthorization” from Spain’s National Energy Commission, it said.
E.ON’s main opponent wasAcciona, a Spanish conglomerate which has built up a 21 percent stakein Endesa and opposes the German deal. Acciona, a major player inrenewable energy, says Endesa would be better off working inpartnership with it. As Enel paid more than E.ON’s offer, it was likelyto side with Acciona, traders said, leaving E.ON seeking support fromother Endesa shareholders.
“We are not planningto counter the E.ON bid,” Conti told reporters on the sidelines of anenergy conference in Athens yesterday.
Asked if Enel would raiseits stake in Endesa to 25 percent, he said, “We are evaluating theoption.” Buying 25 percent of Endesa could trigger a takeover bid underSpanish rules.
Enel bought 9.99 percent of Endesa on Tuesday forEUR4.1 billion its biggest one-off investment outside Italy. It saidthe move was part of a strategy to strengthen its role in Europe’selectricity market.
“Enel will consider raising its stake inEndesa to 24.99 percent of the share capital, should the company obtainauthorization” from Spain’s National Energy Commission, it said.
Thepurchase price for the Endesa shares was EUR39 each, above E.ON’s offerof EUR38.75. E.ON said it remained committed to its Endesa offer, whichhas been staunchly opposed by the Spanish government, trying to keepthe country’s largest power company out of foreign hands.
Butone by one, E.ON knocked down all the barriers to its bid to create theworld’s largest utility, stretching from Russia to Chile. The onlyhurdle left was a shareholder vote on scrapping a rule that cappedvoting rights at 10 percent.
Butone by one, E.ON knocked down all the barriers to its bid to create theworld’s largest utility, stretching from Russia to Chile. The onlyhurdle left was a shareholder vote on scrapping a rule that cappedvoting rights at 10 percent.
E.ON’s main opponent wasAcciona, a Spanish conglomerate which has built up a 21 percent stakein Endesa and opposes the German deal. Acciona, a major player inrenewable energy, says Endesa would be better off working inpartnership with it. As Enel paid more than E.ON’s offer, it was likelyto side with Acciona, traders said, leaving E.ON seeking support fromother Endesa shareholders.
