[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

dam-l LS: Endesa Rejects State Inquiry into Energy Deal



***

CHIP NEWS

***

***

Date: April 28, 1999

Subject:  Endesa Rejects State Inquiry into Energy Deal

Source: El Mercurio, El Diario

***           

                    ENDESA REJECTS STATE INQUIRY INTO

                    ENERGY DEAL


                    Endesa Spain said yesterday it would vigorously fight any

                    effort by state regulatory authorities to paralyze the sale of

                    Endesa Chile. 


                    "We will appeal any decision that would prevent the sale of

                    the stock," said Endesa President Rodolfo Martin Villa, who

                    termed the proposed state intervention "strange and

                    inappropriate under law." Chile's National Economic

                    Prosecutor (FNE) Rodrigo Asenjo insisted Tuesday he would

                    again seek a delay in the planned takeover of power

                    producer Endesa Chile by Endesa Spain affiliate Enersis

                    due to concerns about monopolization and vertical

                    integration of the industry. 


                    Endesa Spain is expected to buy 65 percent of the power

                    generating company in a purchase programmed for today. 


                    Several national deputies, including Christian Democrat Dep.

                    Gutenberg Martinez, said they are studying several other

                    possible avenues to halt the Endesa deal if the FNE request

                    is denied. 


                    Last week the FNE prosecutor was denied permission to

                    begin a special investigation, but Asenjo says he expects to

                    make a stronger case for an investigation this week before

                    the Resolution Commission which must sign off on any such

                    investigation. 


                    In related news, the Spanish risk classifying agency Fitch

                    Ibca signaled on Monday it would drop Endesa Spain's

                    rating from its current double A if it took control of Endesa

                    Chile. 


*Chile Information Project


*The End*

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Monti Aguirre

Latin American Campaigns 

International Rivers Network					

1847 Berkeley Way					

Berkeley, CA. 94703 USA

Phone:	 510 . 848.11.55 and 707 . 591 .91.49

Fax:	 510 . 848.10.08

e-mail:  monti @irn.org

<color><param>ffff,0000,ffff</param>http://www.irn.org</color>