Alexa

Spain's Iberdrola files complaint against France over EdF control

Spain's Iberdrola files complaint against France over EdF control

Spain's Iberdrola SA has filed a complaint with the European Commission against the French state, alleging its ownership of a majority stake in Electricite de France, constitutes "illegal protection" against a takeover, the company said.
The French state, in addition to controlling 84.9 percent of EdF, effectively holds a "golden share" in the French utility which allows it to name a number of board members and top executives by decree, Iberdrola said.
The state's holding in EdF can also only be sold down below 70 percent by modifying French law, Iberdrola added.
This "dissuades potential investors of European Union members" as they can not benefit from a change of control or the purchase of significant stakes in the company, Iberdrola said.
Earlier this year EdF said it had held talks with Iberdrola's main shareholder, Actividades de Construccion y Servicio SA about a potential takeover of Iberdrola, Spain's biggest utility by market value. Iberdrola's management has said it is not interested in any tie-up.