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Repsol drops power bid
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October 26, 2000: 3:50 a.m. ET
Spanish oil and gas firm's Gas Natural abandons bid for generator Iberdrola
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LONDON (CNNfn) - Gas Natural SDG SA, the Spanish gas producer controlled by oil company Repsol YPF SA, on Thursday gave up its bid to acquire the country's second-largest power firm Iberdrola, which had already accepted a  15 billion ($12.5 billion) friendly takeover by Endesa SA.
Spain's largest gas company Gas Natural, which is 45 percent owned by Repsol YPF, said it was withdrawing its proposal because of the hostility of Iberdrola's board.
"Gas Natural considers that in these circumstances an integration with Iberdrola that was not agreed would impede the aim of creating a multi-utility company capable of competing in the national and international energy industry," the company said.
Iberdrola shares fell 0.9 percent to 14.47 in early trading in Madrid, while Gas Natural rose 0.3 percent to 19.25 and Repsol advanced 1.2 percent to 20.19. Endesa shares were 0.2 percent lower at 18.85.
Iberdrola last week agreed to the takeover offer from Endesa, Spain's largest power company. The purchase will create a company controlling about 80 percent of Spain's electricity supply.
Endesa and Iberdrola are expected sell some of their electricity generation and distribution assets to comply with competition regulations. Analysts have tipped Repsol and Gas Natural to buy some of these.
Spain's economy minister Rodrigo Rato last Thursday met the chairmen of Repsol and Gas Natural and reportedly discouraged the partners from embarking on a bid of their own for Iberdrola. 
--from staff and wire reports
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