EU court rules against Spain in Endesa takeover saga

0 Comments | AFP, March, 2008

LUXEMBOURG (AFP) — Europe's highest court ruled Thursday that Spain illegally defied EU demands to drop restrictions on a foreign takeover of a power company in a case that fuelled fears of protectionism between European nations.

The European Court of Justice said Spain had broken EU law by not withdrawing restrictions on Endesa's takeover by German energy group EON as the European Commission had ordered it to do.

"Spain has failed to fulfil its obligations under community law," the Luxembourg-based court ruled, upholding a case by the European Commission against Madrid.

The long-running case goes back to February 2006 when EON launched a hostile takeover offer for Endesa which the Spanish government fiercely opposed even though EU antitrust regulators gave...