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$11B utility deal collapses?
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April 19, 2000: 7:28 a.m. ET
Reports: Spanish bid for Florida electricity firm hits the rocks
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LONDON (CNNfn) - Iberdrola has abandoned its proposed $11 billion purchase of Florida-based electricity firm FPL Group amid opposition to the deal from several board members at the Spanish power utility board, according to news reports Wednesday.
The four Iberdrola board members who represent Spain's largest bank, BBVA, which owns 10 percent of the utility, persuaded the 26-strong Iberdrola board not to go ahead with the deal, the reports suggested.
None of the three companies would comment on the reports. 
Talks between Iberdrola, Spain's second-largest electricity supplier, and FPL (FPL: Research, Estimates), the holding company of Florida Power & Light, were never officially confirmed, although they were the subject of widespread press reports for several weeks.
If the deal has fallen asunder it leaves both utilities in an uncomfortable position. Iberdrola has already caught the attention of Spanish oil and gas firm Repsol, which admitted last November that it was casting an eye over the electricity firm. Buying FPL might have taken Iberdrola out of Repsol's reach.
FPL, which would have been the largest U.S. utility sold to an overseas buyer, could now become the target of other bids, having reportedly shown a willingness to be bought. FPL stock on Tuesday fell 1/4 to 43-5/16. The Wall Street Journal said the companies had been discussing a deal that would value FPL at around $60 per share. Iberdrola stock rose 1.5 percent to  13.47 in midday trade in Madrid.
Spain's utility sector is undergoing a reshaping, with Texas Utilities (TXU: Research, Estimates) dueling for Spain's fourth-largest electricity producer, Hidrolectrica del Cantabrico, with third-ranked Union Fenosa. 
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FPL
Iberdrola
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