German utility giant E.ON has made a friendly E27.5 per share bid for Spanish power provider Endesa. The Iberian energy outfit is already the subject of a rival hostile takeover effort from Spanish counterpart Gas Natural.
Share trading in Endesa was suspended on the morning of February 21 following the unexpected news of E.ON’s approach. E.ON’s E27.5 per share offer exceeds the E21.3 per share bid from Gas Natural, which has been the subject of a long running series of inquiries from both European and Spanish regulators.
Prior to this latest development, it was widely expected that Gas Natural would succeed in clinching the deal. According to the AFX news agency however, Gas Natural has yet to comment on whether it would increase its bid for Endesa.
E.ON says its offer is dependent upon it acquiring at least 50.01% of Endesa’s capital shares. Including debt and minority stakes, the total value of the transaction could reach E55 billion.