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3 April 2007 - German utility E.ON AG has abandoned its $56.2bn takeover bid for Spanish power company Endesa SA.
E.ON said it reached an agreement with Italian utility Enel SpA and Spanish conglomerate Acciona SA, which together hold 46 per cent of Endesa, "to put an end to the substantial uncertainty surrounding the takeover bid for Endesa."
E.ON had tried to win Spain's largest electric utility company, with more than 10 million customers, for 14 months. It announced it was pulling out after Enel and Acciona said they would propose a joint $57.5bn bid, $1.3bn more than E.ON's bid.
"Acciona's and Enel's involvement in Endesa has made our original goal of acquiring a majority stake in Endesa impossible," E.ON chairman and chief Executive Wulf Bernotat said in a statement.
Under the terms of the agreement, E.ON will not launch a new bid for Endesa for at least four years. In exchange, Enel and Acciona plan to sell E.ON a "significant portfolio" of assets in France, Italy, Spain, Poland and Turkey, worth about $13.4bn, when they take over the company.
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