Speaking at a press conference, E.On CEO. Wulf Bernotat said Endesa (nyse: ELE - news - people ) would "retain its autonomy and decision making power" and would continue to be managed out of Madrid. Endesa would manage E.On's operations in Southern Europe and Latin America, Bernotat said.
Bernotat said uniting Endesa's operations to E.On would "deliver returns above its cost of capital" within three years, if the takeover goes ahead.
Duesseldorf-based E.On had previously offered euro36.5 billion ($47.5 billion). It was left alone in the race for Endesa, Spain's biggest electricity company, after Spanish rival Gas Natural SA withdrew its bid on Thursday.
Bernotat said Gas Natural's decision to withdraw had been "expected in the market for quite some time."
"If they couldn't be competitive, it made sense to withdraw their offer," said Bernotat.
E.On's new offer pegged a price per Endesa share at euro38.75 ($50.48), or euro41 billion, compared with the previous euro34.50 ($44.92).
Bernotat said the takeover would create an "undisputed leader in the power and gas industry" with over 50 million customers in 30 countries. The resulting energy giant would be expected to "create a further euro600 million per year of additional value from 2010," Bernotat said.
Now it was up to Endesa shareholders to decide whether to accept or reject E.On's sweetened offer. "This a price which is on the table, shareholders can make a decision whether they sell their shares or hang onto them," said Bernotat.
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