The CEO of Gas Natural has essentially finally admitted that his company's long standing bid for compatriot utility Endesa is inadequate by revealing that its offer will be increased.

Gas Natural CEO Rafael Villaseca said during a conference in Barcelona that his company’s E21.3 per share cash and stock bid for Endesa was too low and that it would be improved, news reports have commented. The revelation comes as rival bidder E.ON has already tabled a E27.50 per share all cash offer.

Mr Villaseca did not specify the exact value of the proposed fresh bid, however currently Gas Natural’s total consideration is approximately E7 billion lower than that of the German energy giant.

If we want to be competitive we’ll have to make an offer that competes with other existing offers to make it attractive for Endesa shareholders, Mr Villaseca said, according to

The admission comes as the bid contest is being held up in the Spanish courts. Endesa has petitioned the courts to block the Gas Natural bid because it alleges its rival illegally colluded with fellow Spanish power outfit Iberdrola on post-acquisition asset divestments.