Endesa bid battle nearing climax

The future of Spanish bid target Endesa hangs in the balance

The Spanish stock market regulator has given Germany's E.ON until Monday to improve its 41bn euro ($54.5bn, £27.7bn) bid for power giant Endesa.

Shareholders will then have until 3 April to consider any revised deal.

A second consortium comprising Spain's Acciona and Italian Enel is waiting in the wings to buy Endesa if 50% of shareholders reject the German offer.

The long-running takeover battle is nearing its end amid continued attempts by Madrid to frustrate a foreign bid.

Cooling-off period

The EU has accused the Spanish authorities of trying to block a foreign takeover of one of its largest companies.

Initially, the Socialist government attached a slew of conditions on a takeover from the German company and openly backed a competing offer by domestic firm Gas Natural.

Gas Natural eventually bowed out of the running, but E.ON's bid was then complicated by Enel's move to build a stake in Endesa.

Acciona and Enel are Endesa's main shareholders, controlling 46% of the company.

Spanish media reports have said Acciona and Enel are prepared to pay 40 euros ($53.1, £27) per Endesa share, pipping E.ON offer 38.75 euros a share offer.

The Spanish regulator has said that neither E.ON nor its rival will be able to come forward with another offer for six months should the initial bids be rejected.