On March 10, 2003, Standard&Poor's Ratings Services placed its long-term 'A+' corporate credit ratings on Spain-based gas utility Gas Natural SDG, S.A. (GN) on CreditWatch with negative implications and affirmed its short-term 'A-1' corporate credit rating. The rating actions follow the announcement by GN of its public offer to acquire Iberdrola S.A. (A+/Watch Neg/A-1), the second-largest electricity utility in Spain. The takeover, which is subject to regulatory approval, will create the largest integrated energy utility in Spain, with a dominant position in gas distribution and supply, and about 40% market share of electricity generation, distribution, and supply. GN is offering €17.01 ($18.8) per share, which represents a premium of about 19.5%. The offer is made up of a
