Qatar will buy 6.16 percent of Iberdrola SA (IBE.MC) for 2.2 billion euros ($3 billion), helping the Spanish utility finance its Brazil operations and further diluting unwanted suitor ACS (ACS.MC).
Iberdrola, saddled with 24 billion euros of net debt, said on Monday it would issue 338 million new shares and sell them plus treasury stock at 5.63 euros each to Qatar Holding, the Gulf state's sovereign wealth fund.
"We believe the market will look upon this capital increase as a defensive move of ... Iberdrola against the entrance of ACS in its shareholding structure," broker Mirabaud said in a note to investors.
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