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Duke withdraws Chile bid
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April 22, 1999: 12:06 p.m. ET
U.S. utility drops offer for Endesa Chile after Spanish rival hikes its bid
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NEW YORK (CNNfn) - U.S.-based Duke Energy Corp. has dropped its bid for Chile's largest power generator after a weeks-long battle with Spain's leading utility over control of the Chilean company.
Charlotte, N.C.-based Duke announced late Wednesday it is withdrawing its offer for Endesa Chile, after rival Endesa of Spain, through its Latin American subsidiary Enersis, raised its bid.
"After our people met with some of the principle shareholders yesterday, it was determined that some of the numbers just didn't add up," Duke spokesman Danny Gibbs said Thursday.
Duke (DUK) saw the deal as a way to make a presence in Chile and to gain a foothold in Argentina and Peru, where Endesa Chile also has operations. Gibbs declined to comment on any other acquisition prospects in Latin America, but said the company continues to look at opportunities in Chile, Argentina and Brazil as well as in Europe and Asia Pacific.
"We anticipate making some announcements very shortly," he said.
Duke and Enersis had been battling over the Chilean company for several weeks. Tuesday, in response to a sweetened offer from Duke, Enersis countered with a bid to buy an additional 30 percent of Endesa Chile for 360 Chilean pesos per share. Enersis, which already owns more than 25 percent of Endesa Chile, would gain a total of 55 percent of the company under the deal.
Under Duke's final bid, it would have paid 275 pesos per share for up to 60 percent of the company. About 475 pesos equals $1.
Duke, which has assets of more than $26 billion and already is active in 50 countries, was trading up 13/16 at 54-13/16 in New York on Thursday. 
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Duke Energy
Endesa
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