Fortress building

28 February 2008 By William Echikson

The Spanish utility s complaints to the EU and the Spanish regulator offer a bitter taste at how it hopes to shield itself by raising a legal and political ruckus. Instead, Iberdrola should focus its fight against France s EDF on extracting maximum value for shareholders.

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Spain's Iberdrola filed a formal complaint this week with the European Commission demanding it strike down the French government's golden share in Électricité de France. Paris controls 85% of EDF.

EDF and Spanish construction company ACS have held talks on a joint offer for Iberdrola. EDF's chief executive Pierre Gadonnieux called the Spanish complaint groundless.

On Thursday, Spain's energy commission threw out a request from Iberdrola to limit ACS's voting rights in the power company and prevent the building firm from raising its stake above 10%. Iberdrola had asked the regulator CNE to cap ACS's voting rights at 3%.

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