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MADRID, Spain (AP) - A Spanish court said Tuesday it has suspended the hostile $26.7 billion bid launched by Spain's Gas Natural for power utility Endesa on grounds that it could violate European Union competition regulations.
The temporary suspension of Gas Natural's cash and stock bid of about euro 22 billion euros was dictated by a Madrid-based mercantile court in response to a complaint made by Endesa, the country's top electricity company.
Endesa claims that Gas Natural acted in collusion with Spain's second-biggest electricity utility, Iberdrola, when the gas distributor agreed to sell assets to Iberdrola as part of a divestment process to address potential antitrust concerns. The side deal was presented by Gas Natural as part of its overall takeover bid for Endesa.
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