Brussels, 05/02/2007 (Agence Europe) - German energy leader, E.ON, again increased its offer on Friday for a takeover of the Spanish electricity company Endesa. It is now offering €41bn, which will make this the largest takeover ever made in the European energy sector. E.ON president, Wulf Bernotat, informed the press in Madrid: “We are expecting a conclusion on the deal in the first part of April”.
This new proposal will make Endesa shares worth €38.75 each, and increase the previous offer by €4.5bn. E.ON also remains the only competitor in the running after its rival Gas Natural dropped out on Thursday evening. E.ON is, however, hoping to obtain 50% of the capital and get Endesa to drop a clause restricting the voting rights of its shareholders. These subjects will be tackled during the extraordinary general meeting of Endesa shareholders - the date of which will be set on Tuesday (but which is expected for mid-March).
Madrid's conditions, imposed by way of the national energy regulator were revised to the satisfaction of E.ON, but the European Commission was still not satisfied (EUROPE 9356). The infringement procedure begun by the latter will not prevent the merger but remain important in the context of future jurisprudence. Endesa shares were worth a little under €39 on Friday evening on the Madrid stock exchange, which could constitute the final stumbling block to the acquisition, given that Spanish legislation does not accept higher bids at this stage. (cd)