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Spanish stock market regulator suspends trade in Endesa
AFP
MADRID
Petroleumworld.com 02 28 06
Spanish stock market regulator CNMV said late Tuesday that it had suspended trading in energy firm Endesa following media reports that Italy's Enel is seeking to buy up to 10 percent of the company at 39 euros per share.
The suspension in trading would remain in place until "the circumstances surrounding the possible acquisition of a significant number of shares on the part of Enel are cleared up," it said in a statement.
E.ON, Germany's largest power provider, is already offering 38.75 euros per Endesa share in a takoever bid that values the Spanish firm at over 41 billion euros (54.2 billion US dollars).
Endesa shares closed down on Tuesday 0.9 percent at 38.12 euros.
Financial news website El Confidencial said Enel's entry into Endesa had been decided at a summit between the Italian and Spanish government held last week in the Spanish Mediterranean island of Ibiza.
It said Enel could join forces with Endesa's leading shareholder Acciona, a Spanish construction group, in trying to block E.ON's takeover bid which would create the number one European firm in the sector by market capitalisation if it is successful.
The Spanish government has opposed the German bid although it has had to bow to European Union pressure to allow it to proceed. Acciona has said it wants Endesa to remain an independent company.
Contacted by AFP, both the Spanish prime minister's office and Enel denied to comment on the reports.
Spain's stock market regulator CNMV extended the deadline for the takeover bid to March 29 from February 26 earlier this month.
AFP 27 2041 GMT 02 07
Copyright© 1999 AFP. All Rights Reserved.
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