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New Bid for Spain's Endesa

Germany's E.On offers $34.7 billion.

Germany's

E.On

(EON)

launched a surprise takeover bid for Spain's

Endesa SA

(ELE)

early Tuesday, topping a separate hostile offer for the utility by nearly 30%.

E.On offered $32.8 a share, or roughly $34.7 billion, in cash for the company. The competing offer, from Spain's Gas Natural, was $25.33 per share, or about $26.3 billion. E.On's offered price represents a 48.2% premium to Endesa's closing price prior to Gas Natural's bid in early September 2005.

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U.S.-based shares of Endesa shares jumped $3.32, or 11.1%, in early trading to $33.16. U.S.-based shares of E.On shares were up $1.15, or 3.1% to $38.22.

At the very least, the new bid helps bolster Endesa's claim that it was undervalued in Gas Natural's offer. A few weeks ago, Endesa's chairman Manuel Pizarro said that Gas Natural would need to increase its bid by at least 25% in order to please shareholders.

Wulf H. Bernotat, E.ON's chief executive, said in the release, "This transaction not only gives E.ON a new dimension but it also offers significant advantages to Endesa and its employees. The company will remain intact, which is something that will also benefit Spanishconsumers."

E.On's bid comes after a string of acquisitive German companies made bids in cross-border transactions since the beginning of 2006, including German-based chemical company

BASF's

hostile takeover bid for New Jersey-based competitor

Engelhard

(EC) - Get Ecopetrol SA Report

in early January.