ON will be struggling to raise 50 which it seeks

March 28, 2012 12:00 AM
ON will be struggling to raise 50 which it seeks

They go blow for blow. A year and a half after the first skirmishes, the attack launched against the first Spanish electrician, Endesa, turns to the battle row. If not for total war. Pushed into his entrenchments by Enel and Acciona, declared opponents, the German E.ON resigned yesterday to meet for the third time his bid for the Madrid company: he proposes now 40 euros by title, or 3 more than its previous offer, and 57 more than in February 2006, date of its first OPA on Endesa. At this price, the Madrid operator is valued at EUR 42.3 billion.

But barely a few hours later, rivals annoncaient their intention to offer even more, as soon as they will be able that is, without doubt in October, when will be terminated six months freezing recently decided by the authorities. To him, the German energy giant, indeed, saw to form in recent weeks a formidable front of refusal on his Italian rival Enel for acquisitions outside its borders, and the Group of MGB Spanish Acciona, anxious to diversify in energy. Together, and with the benevolent neutrality of the Spanish Government, these circumstance allies appear ready to all to prevent E.ON to hand over Endesa. Over the past six months, the opportunity duo is gradually provided 46 of the capital. In these conditions, E.ON will be struggling to raise 50 which it seeks.

Recourse to justice

So Enel and Acciona wish to go further. If the German predator fails its purpose, opponents say ready to buy the shares that they do not have at the minimum price of 41 euros, which leverage this time Endesa 43.4 billion "as soon as possible". In passing, Enel and Acciona indicate that they have already agreed on a division of roles in society, the Italian electrician reserving the right to appoint the future Director General of Endesa, its Spanish partner to appoint the future President of the Board of Directors. In three years, if their views eventually diverge, it is even expected that the Hispanic electrician is cut and transferred into several pieces.

Despite its "Iberian" character, it is not sure whether this alternative solution is to the liking of everyone in Spain. Perhaps that explains the position of the Board of Directors of Endesa, which had already expressed its support for E.ON last month, and again recommended yesterday to the shareholders to make their titles to Düsseldorf group. Unanimously, the directors have held that the new offer made by E.ON reflected "to adequately the value of the company", stressing that the German electrician, had, "its intention to maintain the industrial project of Endesa.

Yesterday evening, Caja Madrid, third shareholder in the group, said that he agreed to surrender the rights related to its 9.99 stake in Endesa in German for a period of two years. This should allow E.ON maintain its OPA and the minority of Endesa to participate.

For now, eyes are turning to the authority of the Spanish financial markets, just extend the OPA of E.IT until April 3, and must primarily determine this morning the rules of the game on a possible counteroffer Enel and Acciona. A priori, the latter should not occur before the beginning of October. But it is not excluded that fellow constable further complicates the opportunity duo: decided to ferrailler in the judicial field, E.ON was asked yesterday to open a procedure for "disturbance of the market, offence against the law of the acquisitions and Insider" from Enel and Acciona. The German energy company requires that the fact that the two partners resell their Endesa titles and "than other purchases of shares their are prohibited". In the same spirit, a second appeal was filed by E.ON in a New York Court for failure to comply with the obligations of communication. He accuses his two opponents of having made false statements and asks, there again, that it is inadmissible to acquire additional securities.