The board of much pursued takeover target Endesa is ready to give suitor E.ON a favorable endorsement, reports have suggested.
<p>German utility titan E.ON recently issued its final offer for Endesa after its main rival Gas Natural dropped out of the bidding and, according to the Dow Jones quoting the Expansion newspaper, Endesa will give the final bid a warm review without going as far as fully endorsing it. <br /><br />E.ON has raised its final offer price for Endesa to E38.75 per share, valuing the entire Spanish utility at E41 billion, far ahead of the E24 million equivalent offer made by Gas Natural. E.ON's bid also represents an impressive premium of 109% on the price of Endesa's shares from before the takeover speculation started.<br /><br />Endesa must now arrange an extraordinary general meeting to allow shareholders to vote on specific E.ON conditions regarding changes to shareholder rights, such as voting arrangements. These conditions must be accepted by shareholders for the bid to progress.</p>