Iberdrola rises on report of possible EDF takeover bid

0 Comments | AFP, January, 2008

MADRID (AFP) — Shares in Iberdrola, Spain's second-biggest energy utility, closed higher Wednesday following a report that its core shareholder ACS and France's EDF are mulling a joint bid for the firm.

The Financial Times reported earlier Wednesday that the two companies had held preliminary talks with a view to buying Iberdrola, the second-biggest energy utility in Spain.

The newspaper, which cited political and investment bank sources, also said Spanish Prime Minister Jose Luis Rodriguez Zapatero and French President Nicolas Sarkozy were aware of the talks between the companies.

It said EDF, Europe's largest power producer, and Spanish builder ACS, may divide up the company if their bid is successful.

Iberdrola closed up 3.58 percent at 9.56...