Iberdrola SA (IBE.MC) is planning to take the winding path of law to block Actividades de Construccion y Servicios SA's (ACS.MC) foray into the Spanish utility and prevent the construction company from raising its stake further in Iberdrola and accessing its board, reports Expansion in its Monday Internet edition.
ACS, which controls more than 12% of Iberdrola, is planning to raise its holding in the electricity company to at least 20% and may even reach a 30% stake, the paper adds. Its decision comes after the construction company agreed last Wednesday to sell its controlling stake in Spanish electricity company Union Fenosa SA (UNF.MC) to Gas Natural SDG SA (GAS.MC).
Tensions between Iberdrola and ACS rose earlier this year, when Iberdrola, in an effort to fend off what might have materialized as a potential hostile takeover from ACS, had asked the country's energy regulator to limit the voting rights and stake holding of its top shareholder ACS.
Iberdrola backed its argument, claiming that the law forbids an investor from exercising voting rights above 3% in more than one group in the energy sector.