"The move was the latest legal complication in a takeover battle for the biggest utility in Spain. The fight has raised accusations of economic nationalism and fears that the $56.5 billion deal could be mired for years in litigation."

"In a statement, the European Union executive said that it was taking action against Spain for not scrapping all the conditions it slapped on the E.ON bid and which the EU ruled were illegal last year. Spain withdrew some of the conditions in November."

""We believe these conditions fit in with EU law and so will stand up in court," a source at the Spanish industry ministry said."

"Industry Minister Joan Clos of Spain said that Europe itself was to blame for the wrangle over the E.ON bid."

"He told the news agency Servimedia that Europe has "rigorous laws on capital movements but we still don't have a common energy policy." Until then, the Spanish government "has the right to defend our energy supply.""

"The case came as the Spanish market regulator CNMV said it saw no legal problem in a deal between E.ON and savings bank Caja Madrid which may help the German power giant have a say in Endesa despite its two major shareholders planning a counterbid in an increasingly complex 18-month takeover battle."

"On Monday, the Italian utility Enel and the Spanish builder Acciona, which together own 46 percent of Endesa, unveiled plans to make their own bid, worth ?43.4 billion, after E.ON raised its offer, for the third time."

"CNMV has banned Enel and Acciona from making an offer for six months but Enel said on Wednesday it would ask the regulator to lift this ban."

"The possibility of E.ON/Caja Madrid and Enel/Acciona
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