• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Spain Court Suspends Company's Endesa Bid

Posted on: Friday, 21 April 2006, 18:00 CDT

By CIARAN GILES

MADRID, Spain - Spain's Supreme Court has suspended government approval for Gas Natural's hostile 22 billion euro ($27.09 billion) bid for power utility Endesa, a court official said Friday.

A cautionary injunction, requested by Endesa, will be granted after Endesa posts a 1 billion euro ($1.23 billion) bond, said the court official, who spoke on condition of anonymity in line with court policy.

Germany's E.On has made a counteroffer for Endesa worth 29.1 billion euros ($35.84 billion).

Endesa argued to the court that the government should not have approve the cash and stock takeover plan from Gas Natural because of objections from antitrust regulators.

It was not immediately clear how long the suspension would last. Endesa and Gas Natural have five days to respond to the judgment after they receive formal notification, which is expected late next week, the Efe news agency reported.

Endesa, the country's largest electricity company, has filed several complaints with Spanish courts to block Gas Natural's takeover.

Endesa earlier this month posted a 1 billion euro bond with a mercantile court to temporarily halt the takeover. Endesa claimed the gas company colluded with Iberdrola, Spain's No. 2 power utility, in an alleged effort to hurt Endesa's business.

Endesa shares were down 0.7 percent to close at 26.85 euros ($33.15).

Source: Associated Press/AP Online

More News in this Category