ENEL Enel Spa

   By Marc Bisbal Arias and Nathan Allen 
 

Iberdrola SA (IBE.MC) has sent a letter to the European Commission in which it accuses Enel SpA (ENEL.MI) of unfair competition in the bidding war to acquire Eletropaulo Metropolitana Electricidade de Sao Paulo S/A (ELPL3.BR).

In the letter, which was sent on Wednesday and published by the Spanish newspaper Expansion, Iberdrola said Enel "is not operating according to market criteria and is adopting decisions lacking from any kind of business or economic logic."

Iberdrola said it can't compete on a level playing field with Enel because the Rome-based company benefits unfairly from its position as a state-owned and "quasi-monopolistic" entity. According to Iberdrola, this grants Enel cheaper and easier access to capital markets, allowing it to compete under privileged conditions compared with its competitors.

On Wednesday, Iberdrola's subsidiary Neoenergia S/A (NEOE3B.SM) raised its offer for Eletropaulo to 32.10 Brazilian reais ($9.21) a share, topping Enel's latest bid of BRL32 a share. Iberdrola's previous offer was BRL29.40 for each share.

"Enel is trying to influence the board of the company and the Brazilian regulator as well as to intimidate competitors with completely unfair press statements," Iberdrola said.

Write to Marc Bisbal Arias at marc.bisbalarias@dowjones.com and Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

April 26, 2018 05:28 ET (09:28 GMT)

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