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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October, 2005
Commission File Number: 333-07654
ENDESA, S.A.
(Translation of Registrant's Name into English)
Ribera del Loira, 60
28042 Madrid, Spain
(Address of principal executive office)
Indicate by check mark whether the registrant
files or will file annual reports under
cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
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Indicate by check mark if the registrant is
submitting the Form 6-K in paper as
permitted by Regulation S-T Rule
101(b)(1):
Yes No X
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Indicate by check mark if the registrant is
submitting the Form 6-K in paper as
permitted by Regulation S-T Rule
101(b)(7):
Yes No X
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Indicate by check mark whether by
furnishing the information contained in this Form, the
Registrant is also thereby furnishing the information to the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A
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Mature Response to Natural Keenness: LEX COLUMN - Endesa/Gas Natural
NEW YORK--(BUSINESS WIRE)--Oct. 5, 2005--The following is an
article from the Lex Column issued yesterday in the Financial Times,
European Edition (page 16).
Endesa (NYSE: ELE) has taken a magisterial 27 days to defend
itself from a hostile Euros 22.5bn bid from Gas Natural, its smaller
rival. The content and the timing of its response are mature. It has
not whinged about political interference. Catalonia's political
establishment, backing Gas Natural, may want to play God. Endesa's
owners, 45 per cent foreigners, adhere to the gospel of price.
Endesa has some strong arguments. The premium to the undisturbed
price is a low 15 per cent. Gas Natural shareholder Repsol would own
13 per cent of the combined entity. It recently said it would sell
down, creating an overhang. La Caixa, an unquoted Catalan bank with a
political mandate, would have 15 per cent. Critically, the low Euros
7.8bn cash component would be financed by selling Euros 7bn-Euros 9bn
of Endesa assets, mainly to rival Iberdrola. Since the price for this
is unknown, it is impossible to evaluate the true worth of the offer.
Strategically, it is unclear what the benefit of integrating gas
distribution and Endesa's power business is, beyond a simple
diversification effect. Adding Gas Natural's Euros 14bn enterprise
value to Endesa's Euros 48bn EV should create synergies. However,
logically, selling Euros 7bn-Euros 9bn of Endesa assets should have
the opposite effect.
Endesa has committed itself to return Euros 7bn in cash over five
years and raised its long-term guidance to hysterical levels. But its
main weapon is that the offer is not convincing. Gas Natural is keen,
but in a hostile, share-financed reverse takeover, enthusiasm is not
enough.
CONTACT: North America Investor Relations Office
Alvaro Perez de Lema, 212-750-7200
http://www.endesa.es
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ENDESA, S.A.
Dated: October 5th , 2005 By: /s/ Alvaro Perez de Lema
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Name: Alvaro Perez de Lema
Title: Manager of North America
Investor Relations