Eon jacks Endesa offer higher

2 October 2006

In its troubled takeover bid for Spanish power major Endesa, Germany’s Eon has announced its intention to increase its offer price to €35/share.

The move followed an announcement by Acciona that it has purchased 10% of Endesa shares at a price of €32/share and a total cost of €3,388 million in a deal financed by Banco Santander. Acciona would not rule out increasing its stake but stopped short of launching a takeover bid

Eon’s commitment to the takeover followed a decision by the European Commission, welcomed by Eon, that the conditions imposed by the Spanish energy authority CNE on the acquisition do not conform with European law.

Eon said it now expects the CNE to come to a rapid conclusion on its standing complaint over the divestiture measures initially imposed by the CNE in return for approving the deal that would ally Eon investment with the Endesa Spanish nuclear portfolio.

Eon chief executive Wulf H. Bernotat said: “The EU Commission's decision confirms our view that the conditions imposed by CNE are not justified. At the same time, it strengthens our commitment to push ahead with the takeover of Endesa.”

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