Enel SpA, Italy's biggest utility, and Acciona SA said they may bid for Endesa SA to trump E.ON AG's 41 billion-euro ($54.6 billion) offer, extending an 18-month battle for Spain's largest power company.
Enel, based in Rome, and Spanish builder Acciona will bid only if E.ON's offer fails, the companies said in statements today. They already control 46 percent of Endesa. The 38.75-euros- a-share bid from E.ON, Germany's biggest utility, lapses March 29.
European utilities are fighting over Endesa's 22 million customers and hundreds of power plants as the region's energy markets open to more competition in July. E.ON Chief Executive Officer Wulf Bernotat has raised his bid twice and battled opposition from the Spanish government.
``If they are willing to offer more than E.ON, they have the upper hand,'' said Antonio Gallego, who helps manage the equivalent of $7.6 billion at Gesfinmed in Alicante, Spain, including shares in Endesa, E.ON and Acciona. ``E.ON is going to have to think long and hard whether to stay and fight.''
Acciona, an investor in wind-energy projects, holds 21 percent of Endesa's shares. Enel owns 10 percent and reserved a stake of almost 15 percent using swaps, regulatory filings show.
The two will offer 41 euros a share for Madrid-based Endesa, Italian newspaper Il Sole/24 reported today, without saying where it got the information. That's 5.8 percent higher than E.ON's offer.
The Spanish builder's shares gained as much as 4.2 euros, or 2.7 percent to 161.7 euros and traded at 160 euros at 10:24 a.m. in Madrid. E.ON fell as much as 3.1 percent and traded at 99.65 euros in Frankfurt. Endesa was suspended yesterday by Spain's regulator. Enel dropped 7 cents, or 0.9 percent, to 7.91 euros.
Enel's Investment Plans
Enel Chief Executive Officer Fulvio Conti has earmarked as much as 15 billion euros for acquisitions and development of plants in areas such as Spain, France, Eastern Europe and the Americas, he said in an interview on Feb. 12. The company is able to raise debt to finance acquisitions, he said. Enel owns Viesgo, a Spanish power company that competes with Endesa.
Acciona, Spain's fourth-largest construction company, is investing in industries that offer wider margins and steadier returns than construction. The company, which is spending more than 2 billion euros on wind-energy expansion, aims to gain access to Endesa's renewable-energy business.
E.ON has fought the Spanish government and a previous bidder, Spain's Gas Natural SDG SA, for more than a year to carry out the world's largest utility takeover.
A spokesman for Endesa, who declined to be identified, wouldn't comment today. E.ON spokesman Josef Nelles didn't respond immediately to a message left with a secretary seeking comment.
Caja Madrid
Caja Madrid, which owns 10 percent of Endesa and sits on the board of the power producer, has so far declined to say what its plans are. The savings bank's board will meet on March 26 to decide whether it will sell to E.ON. A Caja Madrid spokesman, who declined to be identified, refused to comment today.
Spain's government tried to block E.ON's offer, pitting itself against the European Union. The EU responded by threatening to sue Spain as it tried to force open utility markets in the region to cross-border takeovers. Spain's Gas Natural dropped its bid for Endesa, which was favored by the Spanish government.
