German utility E.ON’s 29 billion euro cash bid for the biggest Spanish power company Endesa is simply not enough. That is the word from Endesa’s chairman Manuel Pizarro. He said the market’s reaction proves that as the company’s shares are trading above the price that E.ON has offered. Speculation of some kind of deal between the two companies has been sparked by the fact that Endesa’s new publicity campaign features the word ON and looks similar to E.ON’s, but Pizarro insisted: “We have no agreement, nothing.
Meanwhile the original bidder for Endesa, Spanish energy company Gas Natural, may have picked up an ally. Spanish construction firm FCC said it is studying “with interest” a possible joint bid with Gas Natural for Endesa, though there’s been no official contact between them yet. And E.ON is faced with the possibility of another rival. Electricite de France has expressed an interest in “buying” in Spain .. thought it’s not saying what. And that could get complicated as EDF is still majority owned by the French government and under current legislation would have to ask the Spanish government for permission for any purchase, which could slow down its plans.