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dam-l LS: Endesa Rejects State Inquiry into Energy Deal
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CHIP NEWS
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Date: April 28, 1999
Subject: Endesa Rejects State Inquiry into Energy Deal
Source: El Mercurio, El Diario
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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*
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Monti Aguirre
Latin American Campaigns
International Rivers Network
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Berkeley, CA. 94703 USA
Phone: 510 . 848.11.55 and 707 . 591 .91.49
Fax: 510 . 848.10.08
e-mail: monti @irn.org
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