Eon is offering to acquire 100% of the share capital of Endesa at a price of €27,50 per share in cash, equivalent to some €29.1billion.

The deal represents a premium of 48.2% to Endesa’s closing share price on 2 September, valuing the enterprise at approximately €55.2 billion including net debt, provisions and minorities of around €26.1 billion.

The offer is conditional upon Eon acquiring a minimum of 529,481,934 shares of Endesa, representing 50.01% of the share capital of Endesa.

Endesa issued a statement saying that while “the price offered by Eon clearly improves that of Gas Natural, nevertheless the board of directors considers that it does not adequately reflect Endesa’s real value.”

The deal, if successful, will create on of the world’s leading power and gas companies serving more than 50 million customers in more than 30 countries with combined 2005 sales would amount to 608 TWh of electricity and 945 TWh of gas.

The news came as Eon released its preliminary results showing earnings up by 8% and net income up 71%.

Gas Natural is expected to raise its controversial bid for Endesa in response to the E.On move.