Madrid shares higher early afternoon; Acciona soars on Endesa/E.ON bid talk

Madrid shares higher early afternoon; Acciona soars on Endesa/E.ON bid talk

	Published : Mon, 22 Jan 2007 13:17 By : Agencies Print this Story

MADRID (AFX) - Share prices were higher in early afternoon trade, tracking positive US futures, with Acciona leading gainers as speculation of an improved bid for Endesa from E.On AG gathered pace, dealers said.

At 12.40 pm, the IBEX-35 index was up 84.2 points to 14,481.7, on turnover of about 2.8 bln eur.

Equities opened higher after overnight gains in Asia and on higher US futures, but in cautious trade as the earnings season heats up on both sides of the Atlantic.

Builders were higher across the board, with Acciona soaring 6.55 or 4.39 pct to 155.85, extending recent gains after German financial daily Handelsblatt quoted unnamed sources as saying the company wants E.ON AG to raise its offer for Endesa SA to more than 40 eur per share from the current 35.

Endesa slipped 0.06 to 37.81 after the government reaffirmed the legality of restrictions that Spanish authorities have attached to E.ON's takeover bid, risking a legal battle with the European Commission.

Sacyr Vallehermoso rose 0.88 to 49.20 and FCC put on 0.30 to 79.50, while ACS slipped 0.03 to 42.15.

Main heavyweights were firm, with Telefonica up 0.05 at 16.83, BBVA up 0.12 0.12 at 19.24, SCH 0.05 higher at 14.36 and Repsol YPF up 0.19 at 24.96.

Property groups were in focus amid sector consolidation, with Metrovacesa up 1.80 at 126.50. Inmocaral slipped 0.19 or 3.16 pct after the realtor said late Friday it will make a full bid for Riofisa.

Iberia slipped 0.02 to 3.13 after British Airways' CEO ruled out any merger for at least the next five years, dampening sentiment that the Spanish flag carrier could secure a tie-up soon.

Among smaller caps, Zeltia lost 0.52 or 7.04 pct to 6.87 on heavy profit taking after last week's strong gains.

Abengoa was in the black, putting on 0.66 or 2.33 pct to 29.01 amid news that its Inabensa unit will develop a electric components factory in China.

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