Italy’s Enel said it could boost its stake in Endesa to 24.99 percent as it jumped into a takeover battle for the Spanish utility, potentially threatening a –41 billion ($54 billion) bid by Germany’s E.ON. Enel Chief Executive Fulvio Conti said Europe’s third-biggest power utility did not plan a counter-offer to E.ON’s bid.
“We are not planning to counter the E.ON bid,” Conti told reporters on the sidelines of an energy conference in Athens yesterday.
Asked if Enel would raise its stake in Endesa to 25 percent, he said, “We are evaluating the option.” Buying 25 percent of Endesa could trigger a takeover bid under Spanish rules.
Enel bought 9.99 percent of Endesa on Tuesday for EUR4.1 billion its biggest one-off investment outside Italy. It said the move was part of a strategy to strengthen its role in Europe’s electricity market.
“Enel will consider raising its stake in Endesa to 24.99 percent of the share capital, should the company obtain authorization” from Spain’s National Energy Commission, it said.
E.ON’s main opponent was Acciona, a Spanish conglomerate which has built up a 21 percent stake in Endesa and opposes the German deal. Acciona, a major player in renewable energy, says Endesa would be better off working in partnership with it. As Enel paid more than E.ON’s offer, it was likely to side with Acciona, traders said, leaving E.ON seeking support from other Endesa shareholders.
“We are not planning to counter the E.ON bid,” Conti told reporters on the sidelines of an energy conference in Athens yesterday.
Asked if Enel would raise its stake in Endesa to 25 percent, he said, “We are evaluating the option.” Buying 25 percent of Endesa could trigger a takeover bid under Spanish rules.
Enel bought 9.99 percent of Endesa on Tuesday for EUR4.1 billion its biggest one-off investment outside Italy. It said the move was part of a strategy to strengthen its role in Europe’s electricity market.
“Enel will consider raising its stake in Endesa to 24.99 percent of the share capital, should the company obtain authorization” from Spain’s National Energy Commission, it said.
The purchase price for the Endesa shares was EUR39 each, above E.ON’s offer of EUR38.75. E.ON said it remained committed to its Endesa offer, which has been staunchly opposed by the Spanish government, trying to keep the country’s largest power company out of foreign hands.
But one by one, E.ON knocked down all the barriers to its bid to create the world’s largest utility, stretching from Russia to Chile. The only hurdle left was a shareholder vote on scrapping a rule that capped voting rights at 10 percent.
But one by one, E.ON knocked down all the barriers to its bid to create the world’s largest utility, stretching from Russia to Chile. The only hurdle left was a shareholder vote on scrapping a rule that capped voting rights at 10 percent.
E.ON’s main opponent was Acciona, a Spanish conglomerate which has built up a 21 percent stake in Endesa and opposes the German deal. Acciona, a major player in renewable energy, says Endesa would be better off working in partnership with it. As Enel paid more than E.ON’s offer, it was likely to side with Acciona, traders said, leaving E.ON seeking support from other Endesa shareholders.
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