Duke bids for Chile`s Endesa

In the latest development in the sale of Chile`s generating assets, Duke Energy has proposed a $2.1 billion bid for Empresa Nacional de Electri- cidad (EOC).

EOC, also known as Chile`s Endesa, is Chile`s largest generator, and the bid would buy Duke a 51 per cent stake in the company. Earlier, Enersis, one of Latin America`s largest private electric holding company, approved a proposal to sell its 25.3 per cent stake in Chile`s Endesa.

Meanwhile Endesa of Spain, which owns 32 per cent of Enersis, said that it intended to press ahead with its plan to take full control of Enersis. This would allow it to block the sale of Chile-Endesa. Endesa of Spain has no legal relationship with Chile`s Endesa.

Enersis held talks with Duke in January over a trade sale of the holding, valued at $1bn. The US group, however, withdrew over fears of sparking a bidding war. If the takeover is cleared, it would create the “first truly regional power generating energy marketing force in Latin America”.