Bidding war erupts over Endesa

0 Comments | AFP, March, 2007

FRANKFURT (AFP) — A bitter bidding war for Spanish energy group Endesa erupted Monday as German power giant E.ON took legal action against rival suitors Acciona and Enel, alleging serious breaches of stock market rules.

The move by E.ON came after Spanish construction firm Acciona and Italian electricity company Enel, both Endesa shareholders, sought to outbid E.ON's improved 40-euro-per-share offer for Endesa by at least one euro.

E.ON, whose bid was worth 43.25 billion euros (57 billion dollars), promptly accused Acciona and Enel of deception and insider trading and said it would seek legal injunctions against them in Madrid and New York.

E.ON also demanded that Acciona and Enel be forced to divest their shareholdings in Endesa and be prohibited from...