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Zapatero sees happy end to Endesa saga
By Arnaud Bouvier
AFP
MEERSBURG, GERMANY
Petroleumworld.com 09 13 06
Spanish Prime Minister Jose Luis Rodriguez Zapatero on Tuesday dashed hopes he might announce an end to a tug of war over a German group's bid for Spanish electricity supplier Endesa at a meeting with Chancellor Angela Merkel.
But Zapatero said he believed there would still be a happy ending to the bitter row sparked by German energy giant E.ON's hostile move to take over Endesa.
"This is essentially a problem regarding two private enterprises, but for us it is important that the solution satisfies the German government, the Spanish government and the E.ON itself," he told reporters after meeting with Merkel in at Lake Constance in southern Germany.
"But I believe that the outcome will be positive," added the prime minister, who had hinted a solution to the takeover saga could be found before their meeting here in Meersburg.
Zapatero said he had assured Merkel that the Spanish industry ministry would "shortly" respond to E.ON's complaint against objections the Spanish energy regulator CNE raised to the deal
E.ON has offered to buy Endesa for 26.9 billion euros (34 billion dollars), but the bid has faced opposition from Madrid, which favours a merger of Endesa and the country's biggest gas supplier, Gas Natural.
Gas Natural has made a lower offer for Endesa, but its approach has been complicated by competition concerns and court action by Endesa.
Earlier this year, the EU Commission gave E.ON the green light to press ahead with its takeover plans and announced disciplinary action against Madrid over a decree threatening the deal.
The transaction would make E.ON the world's number one energy supplier.
It has been in the pipeline since February and has seen Merkel emerge as a bitter critic of energy protectionist tendencies in the European Union.
Merkel and Zapatero also discussed Europe's efforts to bolster the United Nations Interim Force in Lebanon (UNIFIL).
The chancellor confirmed reports that Germany and Lebanon had ironed out the terms of engagement of the mission that will see German ships patrol Lebanese waters in a bid to prevent arms being smuggled to Hezbollah by sea.
"We have achieved the essential," Merkel told reporters, adding that she was happy with the mandate the German navy would have after days of debate on whether Beirut would allow foreign vessels in Lebanese waters.
Spain has pledged to contribute some 1,100 troops to the mission, of which about half left by sea for Lebanon on Friday.
The mission is tricky for both Germany and Spain. It is Germany's first military foray into the Middle East since World War II and Spain's first under Zapatero's Socialist government.
The decision three years ago by his conservative predecessor to send troops to Iraq proved highly unpopular with the public and was reversed by Zapatero shortly after taking office.
"The stability of Lebanon is very important. The European Union should play a leading role in the Middle East, along with the United Nations," he said.
AFP 12 1557 GMT 09 06
Copyright ©2006 AFP. All Rights Reserved.
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