E.ON ups bid for Endesa to $53 billion
05 Feb 2007
German energy giant E.ON, the only bidder for Spain's largest power utility firm Endesa, raised its final offer to €41 billion ($53bn /Rs242214 crore) on Friday after a lengthy takeover battle, with the government throwing its weight for a merger with another Spanish power company.
The bid marks an increase on E.ON's previous offer of €36.5 billion. Spanish firm Gas Natural, which had the backing of the Spanish government, withdrew its bid for Endesa the previous day leaving E.ON as the sole contender.
If it goes through, the deal will create an energy giant with a customer base of more than 50 million Europeans and Latin Americans and more than 100,000 workers.
Analysts had anticipated the sweetened offer, which may overcome the resistance put up by Acciona, a major shareholder, which has een opposing the deal.
Before making the bid to Spain's market regulator, E.ON said the offer would be final, with no chance to negotiate the price. Gas Natural, which first made an offer in 2005 for €24 billion euros for Endesa, now wants compensation.
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