Spanish power struggle carries on

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The Spanish government is refusing to back down in a confrontation with the European Commission over conditions for the takeover of power group Endesa.

Madrid told Brussels it would not remove national caveats that are seen as favouring a Spanish bid for Endesa over its German suitor E.ON.

E.ON has been locked in a long-running battle with Spain's Gas Natural for control of Endesa.

Brussels has warned of legal action if the bid clauses are not dropped.

National hurdles

Spain's energy regulator CNE set out the controversial terms that E.ON must meet if it is to take over Endesa.

These include using Spanish coal in power stations, maintaining the Endesa name for five years and not selling off certain company assets.

E.ON has offered 37bn euros ($48bn; £24bn) for Endesa, trumping a 24bn euros bid from Gas Natural that was made in 2005.

Commissioners have set a deadline of midnight on Friday for the Spanish pre-conditions to be withdrawn.