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Spain's Gas Natural Said to Bid for Endesa

Posted on: Monday, 5 September 2005, 18:00 CDT

MADRID, Spain - Gas Natural, Spain's biggest natural gas distributor, was set to launch what would be Europe's largest takeover offer this year by bidding for Endesa, the country's leading electricity company, Spanish media reported Monday.

Trading of both companies' shares in the Stock Exchange was suspended pending statements from company executives, media said.

But an Endesa spokesman said the reports were untrue.

"If they do file a bid, it would be surprising, unsolicited, unexpected and not negotiated," an Endesa spokesman said. The spokesman declined to give his name, in line with Spanish practice.

Spanish media reports said Gas Natural was prepared to pay Endesa 21.30 euros per share ($26.67)- a total of 22.56 billion euros ($28.25 billion) - although the companies would not confirm the move. Gas Natural was due to pay 35 percent in cash and 65 percent in shares, the reports said.

Energy is considered to be one of Europe's fast-moving markets. Endesa's electricity sales have risen in the core markets of Spain and Portugal.

The company's European first-half net profit outside Iberia this year increased thanks to the liberalization of the Italian market and electricity sales grew in Europe and Italy.

Endesa's results also benefited from good figures reported by French electricity and heating company Snet. Endesa took majority ownership of Snet in September and holds 65 percent of the company.

First-half net profit and sales also grew in Latin America.

Source: Associated Press/AP Online

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