The board of Endesa will meet Tuesday to consider its response to a €41bn bid by Eon of Germany in what should mark the final stage of the battle for control of Spain’s largest electricity group. Analysts and people close to the company say directors are likely to recommend the €38.75-a-share offer, which is 41 per cent higher than the original bid presented by Eon almost a year ago. Lex thinks that the Germans are clearly stretching to win this battle. Handily enough Eon has in recent months identified a credible €600m of synergies from buying Endesa, which taxed and capitalised at 10 times largely cover the €4.25 a share Eon just added to its offer. Strategically Eon shifts some of the windfall profits it has made at home into higher growth markets. Provided the offer is sufficient to overcome Spanish opposition, Eon has probably done enough to keep its won shareholders onside.

This entry was posted by Helen Thomas on Monday, February 5th, 2007 at 4:44 and is filed under M&A. Tagged with endesa, eon. Edit this entry.