Germany's E.ON has raised its final offer price for Spanish energy champion Endesa to €38.75 per share, valuing the company at some € 41 billion.
This final offer, which E.ON says cannot be increased any further, represents a premium of 109% on the price of Endesa’s shares on September 2, 2005, the last trading day before Gas Natural launched its offer for Endesa.
E.ON says the transaction is expected to be earnings positive in the first full year and will deliver returns above its cost of capital three years after acquisition. E.ON also expects to create a further €600 million per year of additional value from 2010 from the combination of E.ON and Endesa.
Gas Natural, meanwhile, has decided to withdraw from the takeover, which it now considers inequitable. It announced its bid for Endesa on 5 September 2005, a move which sparked its bidding war with E.ON.
In a statement, the Endesa board of directors unanimously supported the move from E.ON, viewing the offer favourably. Analysts believe that E.ON now has an excellent chance of winning the day, most likely around late March or April.
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