ON is savings and a new stock market battle

March 28, 2012 12:00 AM
ON is savings and a new stock market battle

The E.ON group throws the sponge. After eighteen months of an uphill battle, German energy giant has finally agreed to withdraw its offer on the first Spanish electrician, Endesa. While the latter theoretically ran until tonight, the Group of Düsseldorf went clearly: to the ambitions of its rivals, the Italian Enel and Acciona Spanish ally, which are already provided to 46 of the shares of Endesa, he understood that it did not successfully take control of the Madrid company. A ceasefire was therefore signed yesterday evening between the two camps. He led E.ON to abandon the party, leaving the field open to duo Enel and Acciona, ready to launch as soon as possible its own OPA on Endesa, 41 euros by title. A price valuing the company at more than 43 billion euros.

Last week, the Spanish authority in the financial markets imposed them within six months prior to the filing of a new offer. The compromise reached with E.ON is likely to accelerate the timetable: since yesterday evening, a door-

Word of Acciona ensured that the OPA in preparation would be launched "soon". To convince their opponent to withdraw, Enel and Acciona have proposed to cede a number of assets. And not least... In Spain, the German energy company will not lost everything, because he will inherit Viesgo, the local subsidiary of Enel, which owns more than 2,300 megawatts of production capacity and over 600,000 clients electricity supplies in the North of the country. Elsewhere, E.ON will retrieve more interests held by Endesa in France, Italy, Turkey and Poland. In total, the value of the assets in question amounted to approximately 10 billion.

Gateway to France

With regard to the France, the news is anything but anecdotal. This means that the first European energy company will become, at term, the owner of the WOMEN'SNET, third French producer of electricity. An almost unhoped-for gateway for E.ON, who was until then, never managed to take foot in a meaningful way on the French market. At three months of full opening of electricity and gas markets to competition, his arrival dramatically changes the deal in France for "historical" actors of EDF, gas of France and Suez.

In the immediate future, E.ON is savings and a new stock market battle. The news of his barely known withdrawal, his title was awarded more than 2 yesterday evening at the New York Stock Exchange. A little earlier, the action had closed up 0.31, to 102,10 euros on the Frankfurt Stock Exchange. Investors were worried for months of mad one-upmanship that had led the German group to three times the price to the shareholders of Endesa. Between the launch of the first OPA, in February 2006 and the last adjustment of the offer, last week, the amount of the transaction flew 57, reaching EUR 42.3 billion.

In the end, E.ON should therefore pay only a quarter of that sum. But to its main competitors, the result will be the same, and it is heavy with threats: in the North of England South of the Pyrenees, the first European energy group will expand its influence on the old Continent.