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Spanish group Acciona buys 10 percent of Endesa
AFP
MADRID
Petroleumworld.com 09 26 06
Spanish public works and services group Acciona announced on Monday that it had bought 10 percent of Spain's largest electricity company, Endesa, for an estimated 3.38 billion euros (4.33 billion dollars).
The announcement brings a new element into the battle for control of Endesa, which is subject to hostile takeover bids from both Spain's Gas Natural, for 22.5 billion euros and from German giant E.ON, for 29.1 billion euros.
Acciona, controlled by family-run company Entrecanales, had approached Gas Natural unsuccessfully at the beginning of the year to ask for support with a bid to buy control of Endesa.
The group said in a statement on Monday that it had informed the national stock market commission (CNMV) of its acquisition and did not rule out increasing its stake in Endesa further.
Acciona said it could raise its stake "until a point that does not require a takeover bid, though does permit a part in Endesa's management, once the full authorization is given by (energy regulator) the CNE."
Under Spanish law, Acciona would be forced to acquire at least another 10 percent of Endesa if its stake reached 25.0 percent, though a full take over bid would be triggered only if its stake reached 50.0 percent, according to stockmarket regulator CNMV.
Acciona did not give the price of the transaction, but a spokesman for the company's broker, Santander Central Hispano bank (SCH), told the AFX financial news agency that it had carried out a purchase order for 10 percent of Endesa by an industrial group at a price per share of 32 euros.
This adds up to a total of 3.38 billion euros.
News of the acquisition by Acciona came as the European Union was preparing to take action against Spain for breaching EU competition rules and internal market regulations over its handling of the proposed takeover by E.ON.
Sources told AFP that the commission would announce action on Tuesday over actions by Madrid to thwart the bid by E.ON to protect the energy sector, which the Spanish government considers to be strategically important.
The EU action concerns powers given to the Spanish energy regulator to impose conditions on E.ON's bid.
The conditions include the divestment of substantial, mainly nuclear, assets, representing 35 percent of Endesa's Spanish-based installation capacity.
AFP 25 1934 GMT 09 06
Copyright ©2006 AFP. All Rights Reserved.
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