Union Fenosa

Latin Trade, July, 1999

UNION FENOSA, a Spanish power company, and U.S.-based AES outbid several other companies to buy 50% shares of three Dominican distribution companies. The companies were spun off from the Dominican Republic's struggling state-owned power company, Corporacion Dominicana de Electricidad (CDE). The government accepted Union Fenosa's bid of US$212 million-33% above the $159 million asking price--for the Distribuidora Norte and Distribucion Electrica Sur.

AES, through its subsidiary, AES Distribucion Dominicana, paid $109 million--slightly above the $106 million asking price--for Comercializacion Este.