Gas Natural Must Stay Solo in Endesa Takeover Battle

By Evening Standard, London

Feb. 28–Attempts by Spain’s Gas Natural to raise its e23.5 billion (£16 billion) hostile offer for the country’s largest power company, Endesa, were dealt a blow today by the Spanish stock market regulator. Manuel Conthe, chairman of the CNMV, has decreed Gas Natural cannot enlist a partner to help it with its bid now it has made a firm offer for Endesa. Gas Natural was today debating whether to increase its cash-and-shares offer worth e22.2 a share. Germany’s biggest power company, E.On, owner of Britain’s Powergen, last week offered e29 billion cash — e27.5 a share — for Endesa. Analysts say Gas Natural will have to increase its bid to around e28 to stay in the running. The Spanish government has opposed E.On’s bid.

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