Qatar raises stake in Spanish power giant

Qatar Investment Authority increases stake to 8.4%, boosting investment to $3bn
Qatar raises stake in Spanish power giant
By Bloomberg
Fri 24 Feb 2012 12:53 PM

Qatar Investment Authority, the
emirate’s sovereign wealth fund, has increased its stake to 8.4 percent in
Iberdrola, boosting its investment in Spain’s largest electricity
provider to 2.27bn euros ($3bn).

The fund
based in Doha has surpassed all other stockholders except for Spanish
construction company Actividades de Construccion & Servicios,
which holds about 19 percent of Iberdrola, according to the utility’s
annual corporate governance report covering 2011 activities released
on Thursday.

The Qatari
fund bought its initial 6.2 percent holding in March and acquired the
additional shares in a year Iberdrola fell 16 percent. That was its
worst market performance since 2008, as the global economic slowdown
damped demand for power and Spain slipped toward a second recession in
four years.

Iberdrola,
which on Thursday said it may miss a 2012 profit target, fell 0.4 percent
to 4.52 euros on Friday in Madrid. That compared with a 0.5
percent gain in the 20-member benchmark Euro Stoxx Utilities Index.

The Spanish
power company, also the world’s biggest owner of wind farms, trades at
about 9 times estimated earnings, cheaper than the 9.7 times ratio of
the benchmark index.

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