E.ON shares rose today as investors bet that the German utility's increased $53 billion bid for Spain's Endesa, filed late on Friday, would succeed.
If it lands the deal, E.ON will become Europe's biggest utility. E.ON shares were below earlier highs, a net 0.5 per cent higher at €109.94 at 12.45pm after earlier reaching a high on the day of €111.80.
Endesa stock fell 2.6 per cent to €38.02 , 1.9 per cent below the new offer of €38.75 per share, which was increased from the previous €34.50.
The increased bid values Spain's biggest power company at €41 billion and if successful would be the world's biggest in the utilities sector.
"E.ON's bid ... is high enough to be perceived as a winning bid, although some Endesa shareholders might have been hoping for more. It should still get approval of the Endesa board," Dresdner Kleinwort said in a note. Endesa's board is expected to comment on Tuesday and may stop short of an outright
endorsement of the offer, although it is less likely that it will repeat its previous judgment on E.ON's original offer that it undervalued the Spanish company.